White House National Economic Council Director Kevin Hassett came out army of President Donald Trump‘s business plans, dismissing worries about increased expenses for American customers amid the enormous reaction and recession fears.
” So the fact is, the countries are unhappy and fighting– and, by the way, coming to the table. I got a document from the]US Trade Representative ] last evening that more than 50 countries have reached out to the leader to start a dialogue, but they’re doing that because they understand that they bear a lot of the tariff”.
Further defending Trump administration policies, he added,” I don’t think that you’re going to see a big effect on the consumer in the US, because I do think that the reason why we have a persistent long-run trade deficit is these people have very inelastic supply”, Hassett explained during his appearance on ABC News ‘” This Week” with George Stephanopoulos.
This comes as Trump, earlier this year, announced comprehensive taxes affecting nearly all US trading associates, including a universal 10 % tax on exports and more precise taxes for certain countries. The news triggered an instant decline in share markets and prompted punitive measures from different countries. Democrat politicians and monetary policy critics expressed major concerns about possible recession dangers and deteriorating associations with allied nations.
However, J P Morgan went back to work a US downturn by the end of 2025, attributing it to the taxes. The estimates indicates a possible GDP drop and higher unemployment. Federal Reserve Chair Jerome Powell echoed the fears, highlighting that taxes does produce higher inflation and slower rise.
The broad-based 10 % taxes became effective on Saturday, whilst country-specific taxes are scheduled to begin on Wednesday.
