Kevin Hassett, the Director of the US National Economic Council, refuted allegations that the tariffs were a strategy employed by Trump to destabilize the markets and compel the US Federal Reserve to reduce interest rates.
According to a senior economic advisor to President Donald Trump, over 50 countries have reached out to the White House to initiate trade discussions. This development occurs as American officials work to justify the new tariffs that have led to global tensions and market instability.
In an appearance on ABC News’ This Week, Kevin Hassett, the Director of the US National Economic Council, refuted allegations that the tariffs were a strategy by Trump to destabilize the markets and compel the US Federal Reserve to reduce interest rates.
“I received a report from the USTR last night indicating that more than 50 nations have contacted the president to start negotiations. They are doing this because they recognize that they are significantly impacted by the tariffs,” Hassett stated.
He further emphasized that there was no “political coercion” exerted on the central bank.
Speculation regarding Trump’s influence over the Federal Reserve arose when the president posted a video on Truth Social, suggesting that his tariffs were intended to create turmoil in the stock market to pressure the central bank into lowering interest rates.
‘No reason to expect a recession’
In a different interview, Hassett addressed concerns about a potential market downturn and minimized recession forecasts.
He asserted that there was no basis for anticipating a recession as a result of Trump’s tariff actions.
Last Wednesday, Trump unsettled global markets by announcing extensive tariffs on US imports, prompting immediate retaliation from China and raising concerns about a potential global trade war and recession.
On Sunday morning talk shows, senior officials from the Trump administration sought to frame the tariffs as a strategic move to redefine America’s position in global trade, characterizing the economic disruption as temporary consequences.
In the meantime, US stocks experienced a significant decline, plummeting approximately 10 percent within just two days, as investors were taken aback by the magnitude and assertiveness of the new trade policy.
Countries are eager to appease the US administration
In the wake of the tariff imposition, several countries have reportedly reached out to the Trump administration to negotiate trade agreements. CNN previously reported that India, Vietnam, and Israel have initiated discussions with Trump.
On Friday, Vietnam, which faced a 46 percent tariff, declared its decision to eliminate tariffs on US products entirely. Trump shared this update on his social media platform, Truth Social.
While some officials contend that the tariffs are a strategic move by the president to alter global trade dynamics, Trump stated to reporters on Thursday that he believes these tariffs enhance his negotiating power with other international leaders.
“Every country has contacted us. That’s the advantage of our approach — we position ourselves in control. The tariffs provide us with significant leverage for negotiations. They always have,” Trump remarked.
