On Monday, National Economic Council Director Kevin Hassett acknowledged continued economic uncertainty due to the U.S. administration’s shifting tariff agenda. Speaking on CNBC’s “Squawk Box,” Hassett confirmed that more confusion would likely arise before April 2, when President Trump plans to announce “reciprocal” tariffs targeting countries with existing duties or non-tariff trade barriers on U.S. products.
Hassett’s remarks reflect concerns voiced by analysts and business leaders, who have expressed frustration over the unpredictability of Trump’s tariff decisions. Yardeni Research President Ed Yardeni, who appeared on CNBC before Hassett, highlighted that market stability improved when the president refrained from discussing tariffs.
Hassett, however, predicted that clarity would emerge after April 2, noting that the “reciprocal trade policy” would make sense once implemented. He also defended Trump’s previous tariff threats against Mexico, Canada, and China, asserting that they led to positive outcomes, such as enhanced immigration enforcement and more action against illicit fentanyl trafficking.
Despite the potential for confusion ahead of the April 2 deadline, Hassett maintained that the administration’s approach would ultimately benefit the market.
Uncertainty in the Market
Hassett’s comments came amid ongoing market volatility, fueled by the unpredictability of Trump’s tariff policies. Analysts from Bank of America Global Research noted that the continued uncertainty could delay investment decisions and undermine consumer confidence, with the risk of longer-term negative effects on the economy if this regime persists.
Both President Trump and his administration have refrained from ruling out the possibility of a recession this year, adding to the sense of unease surrounding the evolving tariff landscape.
Author’s Opinion
Uncertainty over tariffs is proving to be an ongoing challenge for businesses and investors. While there may be potential long-term benefits to Trump’s reciprocal trade policies, the current instability is detrimental in the short run. With market volatility and delayed investment decisions, this unpredictability is hurting consumer confidence and creating an environment of stagnation. A clearer and more consistent approach would benefit the economy and foster a sense of stability in an otherwise turbulent environment.
Featured image credit: Pensions & Investments
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