Market News

Donald Trump's baseline tariff of 10% on products from all countries worldwide has taken effect.

White House National Economic Council Director Kevin Hassett defended President Donald Trump's tariffs on Sunday, refuting the idea they will cost American consumers more.

“So, the fact is, the countries are angry and retaliating and, by the way, coming to the table. I got a report from the [U.S. Trade Representative] last night that more than 50 countries have reached out to the president to begin a negotiation. But they're doing that because they understand that they bear a lot of the tariff. And so, I don't think that you're going to see a big effect on the consumer in the U.S. because I do think that the reason why we have a persistent, long-run trade deficit these people have very inelastic supply. They've been dumping goods into the country in order to create jobs, say, in China,” Hassett told ABC News' "This Week" anchor George Stephanopoulos.

Trump announced tariffs on nearly all of the U.S.'s trading partners on Wednesday. Trump's policy includes a 10% tariff on all imports, as well larger tariffs on some individual countries. The announcement was met with an immediate and ongoing plunge in global markets as well as various countries levying retaliatory tariffs against the U.S. Democratic lawmakers and critics of Trump's economic policy raised alarms about a potential recession and adverse effects on the U.S.'s relationship with allies.

The universal 10% tariffs went into effect on Saturday, while tariffs on individual countries are set to go into effect on Wednesday.

Former Treasury Secretary Larry Summers disagreed with Hassett’s contention that tariffs will cause a drop in prices for American consumers.

“This is the biggest self-inflicted wound we've put on our economy in history. We are increasing inflation because the prices are higher because of the tariffs. That gives people less spending power. That means fewer jobs," Summers said after Hassett's interview. "Markets are looking at all of that. And they think companies are going to be worth $5 trillion less than they thought before these tariffs started. And that's just the loss to companies. If you add in the loss to consumers, a reasonable estimate would probably be something like $30 trillion.”