President Trump’s top aide defended his extensive global tariffs on Sunday, downplaying the prospect of his new tax on imports that could lead to price increases or bring painful recession to the U.S. economy.
When Mr. Trump left Mar-a-Lago for a day of golf at his club in Jupiter, Florida, his main economic adviser dismissed the turmoil they released in financial markets around the world, insisting that the president's trade war would ultimately improve the U.S. economic destiny.
But they also sent another mixed signal, where Mr. Trump saw tariffs as a negotiation tool, and even though many of his aides re-touted on Sunday, they heard from foreign countries seeking to make a deal.
“Tariffs are coming. Of course,” said Howard Lutnick, Secretary of Commerce on CBS’s Face the Nation.
Mr. Trump's 10% baseline tariffs on nearly every trading partner were effective Saturday morning. Another round of tariffs aimed at punishing countries with the U.S. trade deficit will be imposed on Wednesday morning.
Kevin Hassett, head of the White House National Economic Commission, said he did not expect to have a “significant impact on American consumers”, even though he admitted during ABC's “this week” appearance that prices “could rise a little” due to the tariffs.
Treasury Secretary Scott Bessent last week saw the sharp decline in global markets as short-term, while highlighting the U.S. demand for the economic “adjustment process”. He added that NBC's “meet the media” “does not necessarily recession” because the government is committed to “building a long-term prosperous economic foundation.”
“We will continue the course,” he said.
Rest as Trump continues to speak provocatively on his tariffs in recent days. On Saturday, with the 10% levy taking effect, the president told his followers the truth about socializing: “Strong, it’s not easy, but the end result will be historic.”
Mr. Trump insists that his tariffs could reset what he considers unfair and harmful trade relations by restoring domestic manufacturing. He also hopes that levy will increase new revenues to help cover the costs of his financial agenda, including parcels that cut corporate and individual taxes.
But his trade policy caused a significant, widespread rebound, and even led our allies to condemn Washington.
Last week, China announced a series of aggressive retaliation measures, which increased the chances of a persistent and economically damaging trade war. Other countries are trying to negotiate lower rates: Vietnam faces a 46% tariff rate, which would be one of the highest taxes any U.S. trading partner is seeking 45-day delays and proposing to lower its own tariffs to zero.
On Sunday’s news show tour, the president’s top aides responded to the consequences, boasting that they have heard from dozens of countries that want to discuss trade.
“Listen, we have 50 countries burning phone lines into the White House,” Agriculture Secretary Brooke Rollins said on CNN's ITU. She said Mr. Trump's tariffs have caused some countries to “desperate and willing” to reach a deal.
But the White House has sent contradictory messages about its real interest in negotiations. Mr Trump suggested last week that he could reach a deal in exchange for “stunning” returns, but then released on Saturday that the tariffs were “stay here”.
Mr. Bessent asked Mr. Trump if he was willing to make a deal, suggesting there was room for negotiation, but nothing would happen soon. “They have been bad actors for a long time. It's not something you can negotiate in a few days or weeks,” he said.
This confusion is unlikely to remove investor fears when markets are ready to open on Monday, a week of routs, with major indexes falling sharply. This is the worst drop in the S&P 500 S&P 500 S&P 500 index since the coronavirus pandemic.
Mr. Trump even seems to suggest that market chaos is part of his strategy: he radiates a video in another user's truth society that believes the president has “deliberately collapsed” the market to some extent, partly because of forcing the Fed to lower interest rates.
Hassett put pressure on the matter on Sunday, initially responding that the Fed was independent, then added: “He is not trying to impress the market.”
The wild whirlwinds in recent days have even scared some Republicans on Capitol Hill. Nebraska Republican Representative Don Bacon predicts that deeper losses can convince his party members to support a bill that will help Congress reclaim some of its powers over tariffs.
“It’s time Congress has restored its authorities,” he said on CBS’s “Facing the Country.”
Alan Rappeport,,,,, Minho Kim and Michael Gold Contributing to this story.
