Egypt Daily News – Kevin Hassett, Director of the U.S. National Economic Council, told ABC News on Sunday that more than 50 countries have contacted the White House to start trade negotiations. This comes at a time when U.S. officials are defending the new comprehensive tariffs that have led to global disruptions, according to Reuters.
Hassett, a senior economic advisor to U.S. President Donald Trump, denied that the tariffs are part of the president’s strategy to shake up financial markets, which would pressure the Federal Reserve (the U.S. central bank) to lower interest rates. He stated that no political pressure would be applied to the central bank.
Trump posted a video on the Truth Social platform on Friday, indicating that the tariffs are intended to deliberately affect the stock market, in an attempt to lower interest rates.
U.S. Treasury Secretary Scott Piyshent downplayed the significance of the stock market decline since Trump’s announcement of the tariffs in an interview with NBC News, stating that there is no reason to expect a recession based on the tariffs.
Global economies were shaken after Trump announced widespread tariffs on U.S. imports on Wednesday, prompting China to respond with its own tariffs and raising concerns about a global trade war and economic recession.
Top officials in the Trump administration appeared on morning talk shows today, aiming to portray the tariffs as a smart repositioning of the U.S. in the global trade system, describing the economic disruptions as short-term consequences. U.S. stocks fell by about 10% during the two days following Trump’s announcement of the new, stricter tariff system, which was harsher than analysts and investors had expected.
Market analysts and major investors attributed the decline to Trump’s tariff policy, which most economists and the U.S. Federal Reserve Chairman believe signals worsening inflation and potential harm to economic growth.
Markets affected by the tariffs are expected to experience further disruptions over the next week, as the broad impact of Trump’s tariffs on imports keeps investors on edge after the worst weekly performance for U.S. stocks since the start of the COVID-19 crisis five years ago.
Hassett told ABC News that the tariffs have led more than 50 countries to contact the White House to begin trade talks.
Taiwanese President Lai Ching-te today offered to cancel tariffs on U.S. imports, laying the foundation for talks with the U.S., pledging that Taiwan would remove trade barriers. He also said that Taiwanese companies would increase their investments in the U.S.
Unlike other economists, Hassett said he does not expect a significant impact on consumers because exporters are likely to lower prices.
