Trump’s Economic Adviser Confirms Global Negotiations on Tariffs as Controversy Grows
April 6, 2025 – In a recent interview with ABC News, Kevin Hassett, the Director of the National Economic Council, discussed the implications of President Donald Trump’s new tariffs, claiming that over 50 countries have expressed interest in negotiating. This announcement comes on the heels of Trump’s decision to implement sweeping tariff measures affecting nearly all U.S. trading partners, stirring significant debate among economists and lawmakers.
Global Outreach for Negotiation
During his appearance on ABC’s "This Week," Hassett stated that countries are reacting to the tariffs with both anger and a willingness to negotiate. He noted, "I got a report from the [U.S. Trade Representative] last night that more than 50 countries have reached out to the president to begin a negotiation." According to Hassett, these nations recognize that they absorb much of the tariff cost. He reassured American consumers that the economic impact would be limited, arguing that "you’re not going to see a big effect on the consumer."
Trump’s newly announced tariffs include a blanket 10% tax on all imports, with additional tariffs imposed on specific countries. This declaration has triggered a substantial decline in global market values and has prompted retaliatory tariffs from various nations. Critics, including Democratic lawmakers, have voiced concerns about the potential for recession and damage to U.S. relations with its allies.
Diverging Perspectives on Economic Impact
Hassett’s optimistic outlook on the tariffs contrasts sharply with the views of former Treasury Secretary Larry Summers, who criticized the economic strategy as detrimental. In response to Hassett’s claims, Summers asserted, “This is the biggest self-inflicted wound we’ve put on our economy in history,” emphasizing that tariffs would lead to increased inflation and reduced purchasing power for American consumers. He further estimated that losses could total around $30 trillion when factoring in both consumer and corporate impact.
The fallout from the tariff announcement saw the Dow Jones Industrial Average fall by 2,200 points, while the Nasdaq entered bear market territory. Analysts are now paying close attention to what this decline signifies for the broader economy.
Questions Around Market Strategy
Throughout the interview, George Stephanopoulos pressed Hassett on whether the market downturn was part of a strategic maneuver by President Trump to pressure the Federal Reserve into lowering interest rates. Hassett denied that the administration is intentionally trying to "tank the market," reinforcing that the president’s main focus is on the welfare of American workers. He stated that “the president’s allowed to have an opinion,” but he made it clear there would be no political coercion of the Federal Reserve.
Tariffs and International Relations
Stephanopoulos also raised questions about the exclusion of Russia from the new tariff list. Hassett explained that the administration is engaged in ongoing negotiations concerning Russia and Ukraine, suggesting that imposing tariffs at this juncture could complicate critical diplomatic efforts.
Economic Caution Advised
As the market adjusts to these new economic policies, Summers urged caution among consumers and corporate leaders. He noted the gravity of the market volatility, comparing it to significant historical downturns. “The two-day move we saw on Thursday and Friday was the fourth largest two-day move since the Second World War," he mentioned, predicting further turbulence ahead.
Conclusion
As tensions rise around the newly established tariffs and the ongoing negotiations, the responses from economists, lawmakers, and international partners highlight the contentious nature of Trump’s economic policy. With global markets in flux and domestic implications still unfolding, stakeholders will be closely monitoring the outcomes of these negotiations and the broader impact on the U.S. economy.
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