Economic advisor Kevin Hassett argues Trump’s tariffs aren’t causing inflation
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Patriotism is now being used as an inflation control strategy by the White House, according to economic advisor Kevin Hassett, who on Monday told CNBC’s Squawk Box that Americans are choosing to buy more local products because of President Trump. When asked why inflation hasn’t surged under aggressive tariff policies, Hassett replied, “There’s, I think, a lot of patriotism in the data.” He said this shift in consumer behavior is helping offset price hikes that many economists have long predicted. According to CNBC, Kevin argued that prices on imported goods actually fell between December and May, a period when the U.S. rolled out several tariff measures under Trump’s direction. Instead of climbing, import prices dropped, which the National Economic Council director believes is a direct result of Americans preferring domestic goods. “The bottom line is, people prefer American products,” Kevin said during the interview, suggesting Trump’s approach had pushed a “buy American” mindset nationwide. Kevin says consumers avoid imports as foreign countries absorb tariffs In his remarks, Kevin doubled down on the argument that Trump’s policies have altered behavior to the point where imports are no longer as attractive. He said, “Demand for imports has gone way down, so much that even with what tariffs have been there… we’ve seen prices going down.” That’s despite fears that the new tariffs would drive up everyday costs. His theory is simple: people aren’t buying imports, so there’s less inflation pressure, even with duties in place. He also claimed that countries the U.S. has trade deficits with are “eating the cost” of tariffs. That means places like Mexico, China, and Canada are not passing those extra costs onto American buyers, as some analysts had warned. Instead, they’re absorbing the economic hit. Still, even the White House admits prices could rise later this year…
Filed under: News - @ July 14, 2025 6:26 pm