Hassett on Trump’s Tariffs: I Don’t Think That You’re Going to See a Big Effect on the Consumer in the U.S.

RUSH TRANSCRIPT STEPHANOPOULOS Britt ░░░░░░░░ Let s talk to ░░░░░░░░ president s top economic ░░░░░░░░ Kevin Hassett Mr Hassett ░░░░░░░░ you for joining us ░░░░░░░░ morning You know the ░░░░░░░░ promised all through the ░░░░░░░░ that prices would come ░░░░░░░░ right away Said they ░░░░░░░░ come down right away ░░░░░░░░ he s saying hang ░░░░░░░░ It won t be ░░░░░░░░ How high are prices ░░░░░░░░ to go How long ░░░░░░░░ they stay there HASSETT ░░░░░░░░ actually saw in this ░░░░░░░░ that you just gave ░░░░░░░░ there s kind of ░░░░░░░░ logical disconnect between the ░░░░░░░░ the competing stories that ░░░░░░░░ team is using to ░░░░░░░░ President Trump On the ░░░░░░░░ hand you re saying ░░░░░░░░ countries are really angry ░░░░░░░░ re going to have ░░░░░░░░ retaliate On the other ░░░░░░░░ you re saying consumers ░░░░░░░░ going to bear the ░░░░░░░░ and this will drive ░░░░░░░░ up If U S ░░░░░░░░ are bearing the cost ░░░░░░░░ s no reason for ░░░░░░░░ countries to be angry ░░░░░░░░ the fact is the ░░░░░░░░ are angry and retaliating ░░░░░░░░ by the way coming ░░░░░░░░ the table I got ░░░░░░░░ report last night that ░░░░░░░░ than 50 countries have ░░░░░░░░ out to the president ░░░░░░░░ begin negotiation But they ░░░░░░░░ doing that because they ░░░░░░░░ that they bear a ░░░░░░░░ of the tariff And ░░░░░░░░ don t think you ░░░░░░░░ going to see a ░░░░░░░░ effect on the consumer ░░░░░░░░ reason we have a ░░░░░░░░ long run trade deficit ░░░░░░░░ people have a supply ░░░░░░░░ ve been dumping goods ░░░░░░░░ the country in order ░░░░░░░░ create jobs say in ░░░░░░░░ And George I promise ░░░░░░░░ I ll answer your ░░░░░░░░ directly and not filibuster ░░░░░░░░ ll stop with that ░░░░░░░░ What do you base ░░░░░░░░ do you base your ░░░░░░░░ you re not going ░░░░░░░░ see an increase in ░░░░░░░░ Every economist who has ░░░░░░░░ at this said you ░░░░░░░░ see an increase in ░░░░░░░░ including Goldman Sachs JPMorgan ░░░░░░░░ the Federal Reserve HASSETT ░░░░░░░░ there were going to ░░░░░░░░ a heavy burden on ░░░░░░░░ U S Consumer then ░░░░░░░░ trade deficit for 30 ░░░░░░░░ we ve seen really ░░░░░░░░ China entered the wto ░░░░░░░░ be something that would ░░░░░░░░ gone down It would ░░░░░░░░ gone down over time ░░░░░░░░ would have responded to ░░░░░░░░ prices The bottom line ░░░░░░░░ China entered the wto ░░░░░░░░ 2000 In the 15 ░░░░░░░░ that followed real incomes ░░░░░░░░ about 1 200 If ░░░░░░░░ goods were the answer ░░░░░░░░ make people better off ░░░░░░░░ incomes would have gone ░░░░░░░░ They went down because ░░░░░░░░ went down more than ░░░░░░░░ went down We have ░░░░░░░░ goods at the grocery ░░░░░░░░ but then we have ░░░░░░░░ jobs and that s ░░░░░░░░ President Obama and Chuck ░░░░░░░░ and Nancy Pelosi and ░░░░░░░░ Trump have come out ░░░░░░░░ we have to come ░░░░░░░░ with a better policy ░░░░░░░░ policy that treats our ░░░░░░░░ fairly compared to everyone ░░░░░░░░ And now President Trump ░░░░░░░░ to his word like ░░░░░░░░ promised during the campaign ░░░░░░░░ he put into his ░░░░░░░░ platform he s delivering ░░░░░░░░ his word STEPHANOPOULOS Right ░░░░░░░░ also said prices has ░░░░░░░░ down and he s ░░░░░░░░ prices are going to ░░░░░░░░ up On Truth Social ░░░░░░░░ president retweeted a post ░░░░░░░░ said the market drop ░░░░░░░░ part of a strategy ░░░░░░░░ force the Fed to ░░░░░░░░ interest rates Is that ░░░░░░░░ president s strategy If ░░░░░░░░ why did he post ░░░░░░░░ HASSETT The bottom line ░░░░░░░░ the president has been ░░░░░░░░ about tariffs for 40 ░░░░░░░░ and this has been ░░░░░░░░ the policy that he ░░░░░░░░ focused on in the ░░░░░░░░ and throughout his political ░░░░░░░░ and the cyclical cycle ░░░░░░░░ the Fed comes and ░░░░░░░░ That s a different ░░░░░░░░ This is President Trump ░░░░░░░░ desired policy He s ░░░░░░░░ arguing for it since ░░░░░░░░ was on the view ░░░░░░░░ 40 years ago and ░░░░░░░░ tariffs is what he ░░░░░░░░ into the convention This ░░░░░░░░ not a surprise for ░░░░░░░░ STEPHANOPOULOS Is it his ░░░░░░░░ to force the Fed ░░░░░░░░ lower interest rates and ░░░░░░░░ market crash was HASSETT ░░░░░░░░ Fed is an independent ░░░░░░░░ We respect the Independence ░░░░░░░░ the Fed The president ░░░░░░░░ allowed to have an ░░░░░░░░ Absolutely the president is ░░░░░░░░ to have an opinion ░░░░░░░░ there s not going ░░░░░░░░ be any political coercion ░░░░░░░░ the Fed for sure ░░░░░░░░ So that is his ░░░░░░░░ tank the market so ░░░░░░░░ Fed lowers HASSETT No ░░░░░░░░ He s not trying ░░░░░░░░ tank the market He ░░░░░░░░ trying to deliver for ░░░░░░░░ workers What would you ░░░░░░░░ him do Again real ░░░░░░░░ down 15 years in ░░░░░░░░ row under the previous ░░░░░░░░ and that s why ░░░░░░░░ voted for him They ░░░░░░░░ him in to turn ░░░░░░░░ economy around for the ░░░░░░░░ worker George I m ░░░░░░░░ to get I m ░░░░░░░░ to give clarity George ░░░░░░░░ that the president s ░░░░░░░░ or not He posted ░░░░░░░░ He said the strategy ░░░░░░░░ for the markets to ░░░░░░░░ so the Fed lowers ░░░░░░░░ rates It s not ░░░░░░░░ strategy for the markets ░░░░░░░░ crash It is not ░░░░░░░░ strategy for the markets ░░░░░░░░ crash.