Kevin Hassett, Director of the White House National Economic Council and one of President Donald Trump’s top economic advisers, has pushed back against the widely held view that the administration’s tariffs will significantly raise consumer prices in the U.S. In an April 6, 2025, interview on ABC’s This Week, Hassett argued that the impact on consumers would be minimal, stating there “won’t be a big effect” on prices, though he conceded they “might go up some.” He suggested that the tariffs—part of Trump’s escalating trade policy, including a 25% levy on imports from Canada and Mexico, 20% on Chinese goods, and a broader “reciprocal” tariff plan—would not translate into substantial cost increases for American households. Hassett’s stance hinges on the idea that foreign producers or intermediaries might absorb much of the tariff burden to maintain market share, rather than passing it fully onto U.S. consumers.
This position contrasts sharply with mainstream economic consensus. Economists across the spectrum, from the Tax Foundation to the Federal Reserve Bank of Boston, have warned that Trump’s tariffs—projected to raise $2.9 trillion over a decade—will likely drive up costs for goods like cars, electronics, and groceries, with estimates suggesting an average annual hit to households ranging from $625 to over $1,900 before accounting for broader economic ripple effects. Studies of Trump’s first-term tariffs, like the 50% tax on washing machines in 2018, found that U.S. consumers bore most of the cost, with prices rising by about $86 per unit. Hassett, however, appears to lean on a theory echoed by Treasury Secretary Scott Bessent, who told NBC News there’s “no reason” to expect a recession from tariffs, implying the U.S.’s leverage as a major consumer market could force foreign suppliers to eat the costs.
Critics, including posts on X and analyses from outlets like The New York Times and NPR, call this optimistic at best, pointing to integrated supply chains—think auto parts crossing North American borders multiple times—and the improbability of foreign firms slashing profits indefinitely. Hassett’s comments come as over 50 countries have reportedly reached out to the Trump administration since the latest tariff announcements, signaling global unease. While he’s confident jobs numbers might fluctuate upward as tariffs incentivize domestic production, the immediate fallout—market sell-offs, paused factory production in Canada and Mexico, and warnings from groups like the National Retail Federation—suggests consumers could feel the pinch sooner than he admits. What do you think—can the U.S. really sidestep price hikes, or is Hassett underplaying the inevitable?
