Kevin Hassett, the director of the National Economic Council and a top economic aide to President Donald Trump, has cautioned that "some uncertainty" is expected in the coming weeks due to Trump's tariff policies. Speaking on CNBC's "Squawk Box" on Monday, Hassett emphasized that this uncertainty would persist until April 2, the date when the administration plans to start imposing tariffs on countries with their own duties or non-tariff trade barriers on U.S. products.
Hassett acknowledged the confusion engendered by Trump's tariff announcements, which have sparked concerns across various sectors. He predicted, however, that clarity would emerge after April 2, when the administration implements its plan for "reciprocal tariffs." Despite the turbulence, Hassett defended Trump's use of tariffs and threats against Mexico, Canada, and China, arguing that a reciprocal trade policy makes considerable sense.
During his CNBC appearance, which followed an interview with Ed Yardeni, President of Yardeni Research, Hassett responded to a comment made by Yardeni. Yardeni had remarked, "Any day where the president doesn't talk about tariffs is a good day for the market." Hassett concurred with the sentiment but reiterated that "between now and April 2, there'll be some uncertainty."
Hassett stated that it is crucial for there to be absolute clarity regarding Trump's tariff policies. He asserted that the situation will improve once the administration's plans are enacted next month. This stance comes amid widespread confusion in the market, as noted by Bank of America Global Research: "Confusion remains the name of the game, delaying investment decisions and affecting consumer confidence."