Impact of President Trump's Tariffs on American Consumers

SOURCE abcnews.go.com
White House National Economic Council Director Kevin Hassett defends President Trump's tariffs, stating they won't have a big effect on American consumers. Former Treasury Secretary Larry Summers disagrees, claiming the tariffs will lead to higher prices and a significant economic loss.

Key Points

  • Hassett believes tariffs won't have a big impact on consumers due to inelastic supply
  • Summers argues that tariffs will increase inflation, reduce spending power, and lead to job losses
  • Market volatility signals trouble ahead

Pros

  • More than 50 countries have reached out to the U.S. for negotiation
  • Tariffs may lead to more balanced trade relationships

Cons

  • Immediate plunge in global markets
  • Adverse effects on U.S. relationships with allies
  • Democratic lawmakers and critics fear potential recession