National Economic Council Director Defends Trump’s Tariff Policy
On April 6, 2025, Kevin Hassett, Director of the National Economic Council, defended President Donald Trump’s recent tariff announcements during an interview on ABC News’ “This Week.” Hassett attempted to allay concerns regarding the potential impact of these tariffs on American consumers.
Understanding the Tariff Adjustments
President Trump has introduced a sweeping set of tariffs affecting nearly all of the United States’ trading partners. These measures include a universal 10% tariff on all imports, with additional tariffs targeting select countries. Following the announcement, global markets reacted sharply, experiencing significant drops, and several nations began implementing retaliatory tariffs.
Despite these actions, Hassett argued that the tariffs would not substantially burden American consumers, claiming that foreign countries would bear most of the cost. “Countries are angry and retaliating…but they’re doing that because they understand that they bear a lot of the tariff,” he stated. This position was expressed during his conversation with George Stephanopoulos, where he emphasized that the impact on U.S. consumers would be minimal due to long-term trade practices involving countries with inelastic supply lines.
Mixed Responses from Economic Experts
Hassett’s assertions were met with skepticism from former Treasury Secretary Larry Summers, who criticized the tariffs as a detrimental action to the U.S. economy. “This is the biggest self-inflicted wound we’ve put on our economy in history,” Summers remarked, noting that higher prices resulting from tariffs would decrease consumer spending power and potentially lead to job losses.
Summers highlighted the broader implications of the tariffs, suggesting that they could result in substantial losses for both companies and consumers, estimating the overall economic toll could reach approximately $30 trillion.
Market Reactions and Federal Reserve Influence
In light of the significant market fluctuations following the tariff announcements, Stephanopoulos questioned whether Trump’s strategy involved creating market instability to press the Federal Reserve into lowering interest rates. Hassett refuted this idea, insisting that Trump is focused on delivering outcomes for American workers and respects the Federal Reserve’s independence.
“The president’s allowed to have an opinion… but there’s not going to be any political coercion over the Fed, for sure,” Hassett noted, seeking to clarify the administration’s position on the independence of Federal monetary policy in the face of market changes.
Russia’s Exclusion from Tariff Measures
Another point of discussion was the exclusion of Russia from the list of countries subjected to new tariffs. When questioned about this decision, Hassett explained that ongoing negotiations between Russia and Ukraine played a significant role in the administration’s stance. He emphasized that it would be inappropriate to introduce additional tariffs amid critical negotiations affecting thousands of lives.
Hassett acknowledged that the situation with Russia could evolve, and future tariffs could be considered as the negotiations progress. “Russia is in the midst of negotiations over peace… and that’s what President Trump is focused on right now,” he stated.
Advice for Consumers and Businesses
In light of the tariffs and their potential repercussions, Larry Summers advised consumers and corporate leaders to brace for increased market turbulence. Reflecting on the recent drastic market shifts, he cautioned against making large purchases and recommended holding onto cash until a reversal of tariff policies occurs. He asserted that this period could serve as a critical test for the administration’s economic advisors.
Summers underscored the necessity of addressing the root causes of current market volatility to mitigate further economic challenges down the line.
Conclusion
The recent tariff policy introduced by President Trump is a contentious topic, drawing attention from various economic experts and igniting debates about its long-term implications for the U.S. economy. As this situation unfolds, stakeholders across the spectrum will need to navigate the complexities that come with these significant economic maneuvers.