WASHINGTON (Reuters) — Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve consideration of possible rate cuts, Fed Chair Jerome Powell told members of Congress on Tuesday.
Pressed by Republican members of the House Financial Services committee about why the Fed isn&#8217;t cutting rates, as President Donald Trump has demanded, Powell said he and many at the Fed expect inflation to start rising soon, and that the central bank was in no rush to ease borrowing costs in the meantime.
Powell particularly said he would not open the door to a rate cut at the Fed&#8217;s July meeting, as two of his colleagues recently suggested, or at any other session for that matter.
&#8220;I do not want to point to a particular meeting. I don&#8217;t think we need to be in any rush,&#8221; given a still-strong labor market and so much uncertainty about the impact of the still-unresolved tariff debate, Powell said.
Referring to expected tariff-driven price increases, Powell said &#8220;we should start to see this over the summer, in the June number and the July number. &#8230; If we don&#8217;t we are perfectly open to the idea that the pass-through (to consumers) will be less than we think, and if we do that will matter for policy.&#8221;
“I think if it turns out that inflation pressures remain contained we will get to a place where we cut rates sooner than later,&#8221; he said.
With the central bank largely sidelined waiting for the outcome of the Trump administration&#8217;s tariff negotiations, Powell was quizzed repeatedly about why the central bank seemed preoccupied with that issue and isn&#8217;t cutting rates given that inflation so far has been modest.
Powell said that Fed policy isn&#8217;t meant to endorse or criticize the Trump administration&#8217;s approach to trade, only to deal with an inflation impact that the Fed and forecasts more broadly expect to gather momentum over the rest of the year.
&#8220;We aren&#8217;t commenting on tariffs,&#8221; Powell said. &#8220;Our job is keeping inflation under control, and when policies have short- and medium-term, meaningful, implications, then inflation becomes our job.&#8221;
&#8220;All professional forecasters I know of&#8230;expect a meaningful increase in inflation over the course of this year,&#8221; Powell said, elaborating on the Fed&#8217;s reluctance to cut rates while major aspects of Trump&#8217;s trade policy remain unresolved.
<h3>PARING BETS</h3>
In prepared testimony to the House panel, Powell noted that those effects &#8220;could be short-lived, reflecting a one-time shift in the price level. It is also possible that the inflationary effects could instead be more persistent. &#8230; For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.&#8221;
Following the release of Powell&#8217;s testimony, investors pared bets that the central bank might cut its policy interest rate as soon as the central bank&#8217;s July meeting, and increased the perceived odds for a rate reduction in September, with another to follow later in the year.
Powell&#8217;s testimony, as is usually the case with his semiannual congressional appearances, largely tracks the central bank&#8217;s most recent policy statement, approved last week. Fed officials voted unanimously at that meeting to hold the benchmark interest rate steady in the current 4.25% to 4.5% range, and gave no indication rate cuts were imminent.
New economic projections released at the time showed officials at the median expect two quarter-point rate cuts by the end of the year, in line with current market pricing.
In recent days, two Fed governors, both Trump appointees, have said rates could fall as soon as the July meeting, given inflation has not yet risen in response to tariffs, while three reserve bank presidents said they still worry inflation will intensify over the rest of the year.
Trump, who appointed Powell as chair in his first term but is expected to replace him when his term ends next spring, has repeatedly called for steep rate cuts.
&#8220;We should be at least two to three points lower,&#8221; he said in a social media post ahead of the hearing, adding in reference to Powell that he hoped &#8220;Congress really works this very dumb, hardheaded person, over.&#8221;
(Reporting by Howard Schneider; Editing by Andrea Ricci)

FILE PHOTO: Federal Reserve Chair Jerome Powell speaks at a press conference in Washington

Jerome Powell Suggests Delaying Rate Cuts Beyond July Meeting While Fed Studies Tariff Impact

Congress

Donald Trump

Economy

Federal Reserve

Inflation

Interest Rates

Jerome Powell

Tariffs

Washington D.C.

Treasury Secretary Scott Bessent remarked on Thursday that a &#8220;new version of TDS&#8221; seems to have emerged, specifically targeting President Donald Trump&#8217;s tariff policies, and reminded Democrats that they lost the presidential election last year while defending the sitting administration&#8217;s economic policies.
Shorthand for &#8220;Trump Derangement Syndrome,&#8221; TDS refers to a phenomenon characterized by intense negative reactions to Trump, his actions, or his supporters. Republican lawmakers recently <a href="https://www.dailywire.com/news/gop-searches-patient-zero-trump-derangement-syndrome-new-bill" target="_blank" rel="noopener">introduced</a> a bill in the House to begin a study of its origins and identify potential solutions.
During a hearing on Capitol Hill, Sen. Ron Wyden (D-OR) <a href="https://x.com/RichSementa/status/1933185612636463228" target="_blank" rel="noopener">pressed</a> Bessent on whether American consumers are paying the tariffs amid Trump&#8217;s trade war with other countries after pointing out that the secretary himself <a href="https://www.dailywire.com/news/bessent-speaks-to-walmart-ceo-dismisses-draconian-forecast-on-tariffs" target="_blank" rel="noopener">conceded</a> nearly a month ago that retail giant Walmart could pass on price increases to consumers.
<blockquote class="twitter-tweet" data-media-max-width="560">
&#8220;There seems to be a new version of TDS, which I would call Tariff Derangement Syndrome,&#8221; says <a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a>.
&#8220;Many on your side seem disappointed that there is no inflation &#8230; We saw the best inflation numbers since 2020, so there has been nothing passed on. There has been… <a href="https://t.co/KpYCPlUoA3">pic.twitter.com/KpYCPlUoA3</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1933174639531901157?ref_src=twsrc%5Etfw">June 12, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Bessent accused the Democrat of &#8220;cherry-picking&#8221; to suit a narrative. &#8220;Walmart makes decisions based on their customers&#8221; while he said two other large retailers, Amazon and Home Depot, have chosen not to pass along the cost of tariffs.
&#8220;There seems to be a new version of TDS, which I would call Tariff Derangement Syndrome, and many on your side seem disappointed that there is no inflation today,&#8221; Bessent <a href="https://x.com/RapidResponse47/status/1933174639531901157" target="_blank" rel="noopener">continued</a>. &#8220;As a matter of fact, we saw the best inflation numbers since 2020, so there has been nothing passed on. There has been no tariff recession. So no inflation, no recession due to tariffs.&#8221;
&#8220;Democrats are so out of touch and partisan that they refuse to acknowledge the President’s inflation wins and would actually prefer to see numbers rise,&#8221; Bessent <a href="https://x.com/SecScottBessent/status/1933183375227171099">wrote</a> in a post on X with a clip of his back-and-forth with Wyden.
At another point during the hearing, Bessent chided Sen. Michael Bennet (D-CO) during an exchange in which the Democrat lawmaker was loudly talking about tax cuts.
<blockquote class="twitter-tweet" data-media-max-width="560">
.<a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a> nukes <a href="https://twitter.com/SenatorBennet?ref_src=twsrc%5Etfw">@SenatorBennet</a> on President Trump&#8217;s tax cuts: &#8220;We had a referendum on November 5th on our economic policies. Your side lost.&#8221; <a href="https://t.co/MLQ3AbZ36P">pic.twitter.com/MLQ3AbZ36P</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1933175478455611657?ref_src=twsrc%5Etfw">June 12, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
&#8220;Sir, we had a referendum on November 5th on &#8230; economic policies. Your side lost,&#8221; Bessent said.
The secretary kept going, but Bennet started to speak over him.
&#8220;I agree with that, and I&#8217;m a rare Democrat who doesn&#8217;t blame Donald Trump for winning,&#8221; Bennet exclaimed. &#8220;I&#8217;m sad he won.&#8221;
Bessent shot back, &#8220;A higher decibel level does not give your statements more veracity.&#8221;

Treasury Secretary Scott Bessent Testifies To Senate Finance Committee On Treasury Dept’s Budget

Bessent Identifies New Strain Of TDS, Reminds Dems They Lost The Election

Democrats

Politics

Scott Bessent

Trade War

Treasury Department

Trump Derangement Syndrome

The United States and China agree to a trade framework, slashing tariffs and unlocking rare earth minerals. Inflation finally cools  — but L.A. remains hot. We break down the latest on the economy and the political unrest. And, as chaos erupts on the L.A. streets, the real battle is for the narrative – who’s winning the PR war?
It’s Thursday, June 12, and this is the news you need to know to start your day.
Morning Wire is available on video! You can watch today’s episode here:
 
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If you’d rather listen to your news, today’s edition of the Morning Wire podcast can be heard below:
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<h2>Trade War Finale: We Have A Deal</h2>
<div class="image"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-933235" src="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_00_21_19.Still001-3.jpeg" alt="" width="640" height="360" srcset="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_00_21_19.Still001-3.jpeg 640w, https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_00_21_19.Still001-3-300x169.jpeg 300w" sizes="(max-width: 640px) 100vw, 640px" /></div>
Topline: President Donald Trump announced that the United States has reached a trade deal with China. The news comes amid an uneasy truce after a series of retaliatory tariffs.
Early Wednesday morning, Trump shared on Truth Social that “Our deal with China is done, subject to final approval with President Xi and me.” This followed two days of negotiations between top economic officials from both countries in London. Trump said that the deal, as it stands, would impose 55% tariffs on Chinese goods entering the United States, but just 10% for American goods in China. China has also agreed to resume shipping magnets and rare earth minerals to the United States.
“Rare earths power $7 trillion US dollars of consumer goods every year,” Shaun Rein, the founder of the China Market Research Group, told The Daily Wire. “Without Chinese rare earths, our iPhones aren&#8217;t going to work. Our cars aren&#8217;t going to work. And importantly, our military defense weapons aren&#8217;t going to work. So without Chinese rare earths, America&#8217;s in a lot of trouble. What also people don&#8217;t realize is that about 95% of antibiotics actually [are] manufactured in China. And then all straight down everything you get out of Walgreens or CVS, whether it&#8217;s Advil or Tylenol, a lot of that is made in China.”
China is the second-largest economy in the world and is a major market for many American goods – $143.5 billion of U.S. goods were exported to China in 2024, although American imports of Chinese goods were far higher at $438.9 billion. Tariffs of 55% are comparatively high but much lower than the 145% imposed before the agreement was reached. The deal will allow Chinese students to resume attending American colleges and universities.
Commerce Secretary Howard Lutnick said that this agreement would conclude trade negotiations with China and that deals from many other countries are close to locking in their own deals with the United States.
“We’re in good shape with lots of countries, but good shape isn&#8217;t good enough for the United States of America,” Lutnick told <a href="https://x.com/atrupar/status/1932819395077710148">CNBC</a>.”We want great deals that are fundamental to America, we can get them, we can get them done.”
And&#8230; Inflation rose just 0.1% in May compared to April — it’s now sitting at 2.4%, near a four-year low. 
&nbsp;
<h2>Anti-ICE Riots Spread As Politicians Spar</h2>
<div class="image"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-933233" src="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_01_21_04.Still002.jpeg" alt="" width="640" height="360" srcset="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_01_21_04.Still002.jpeg 640w, https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_01_21_04.Still002-300x169.jpeg 300w" sizes="(max-width: 640px) 100vw, 640px" /></div>
Topline: The clash between President Trump and California Democratic Governor Gavin Newsom escalated Wednesday, as anti-ICE riots continued to spread across the country. 
Protests continue to pick up steam nationwide:
<ul>
<li style="font-weight: 400;" aria-level="1">By Wednesday night, Las Vegas, Minneapolis, Philadelphia, and Seattle joined the growing list of cities being hit by demonstrations, many of which turned violent. </li>
<li style="font-weight: 400;" aria-level="1">In Texas, Republican Governor Greg Abbott mobilized the National Guard before protests across the state turned violent, with officers in a number of cities left hospitalized. </li>
<li style="font-weight: 400;" aria-level="1">In Atlanta, hundreds of rioters lobbed fireworks at police and attempted to shut down a highway — authorities responded with tear gas and finally got the crowd under control. </li>
</ul>
California is still the epicenter of the unrest. Demonstrations continued Wednesday night, as rioters defied curfews and clashed with police. At least one rioter, Emiliano Galvez, has been charged with attempted murder. Galvez, a previously deported Mexican national, allegedly threw a Molotov cocktail at police in Los Angeles County. 
&#8220;Since June 6, there have been 330 illegal aliens that have been arrested as part of these riots in Los Angeles,” White House Press Secretary Karoline Leavitt <a href="https://x.com/RapidResponse47/status/1932853233954836599">told</a> reporters. “113 of those illegal aliens had prior criminal convictions.&#8221;
Governor Newsom has<a href="https://www.youtube.com/watch?v=0n77NFjDlBI"> voiced his support</a> for the demonstrations, telling Americans that it was time to “stand up” to President Trump, whom he blamed for provoking the unrest: “Donald Trump without consulting California law enforcement leaders commandeered 2000 of our state’s National Guard members to deploy on our streets illegally and for no reason. This brazen abuse of power by a sitting president inflamed a combustible situation…The founding fathers didn’t live and die to see this moment. It’s time for all of us to stand up.”
These anti-ICE protests aren’t likely to die out anytime soon — organizers are planning “No Kings” demonstrations in cities across the country on Saturday, June 14. That event will coincide with President Trump’s 79th birthday, along with a massive parade in Washington, D.C., to celebrate the Army’s 250th birthday. 
&#8220;We&#8217;re going to be celebrating big on Saturday,” President Trump <a href="https://x.com/RapidResponse47/status/1932480100026511650">said</a>. “And if there&#8217;s any protester that wants to come out, they will be met with very big force… These are people that hate our country. They will be met with very heavy force.”
&nbsp;
<h2>Protests &amp; PR</h2>
<div class="image"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-933231" src="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_02_17_05.Still003-2.jpeg" alt="" width="640" height="360" srcset="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_02_17_05.Still003-2.jpeg 640w, https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_02_17_05.Still003-2-300x169.jpeg 300w" sizes="(max-width: 640px) 100vw, 640px" /></div>
Topline: As Los Angeles and other cities contain the anti-ICE riots, Democrats, Republicans, and the media battle over shaping the narrative.
Democrats and Republicans on the national stage have made the ongoing unrest a central part of their messaging since ICE raids began in L.A. last week. Democrats have slammed Trump for deploying troops against American citizens and blame his actions for sparking the riots, arguing that the threat of a militarized response escalated tensions on the ground and tracks with a broader pattern of authoritarianism.
Republicans, especially the president, have taken the opposite tack – decrying Democrats for being complicit in the ongoing violence and lawlessness and insisting that Trump&#8217;s quick and decisive deployment of troops was necessary to prevent further destruction.
“What&#8217;s going on looks really bad to the average American,” Mark Hemingway, Senior Writer at RealClearInvestigations, told The Daily Wire. “This is a very different time than 2020. And we went through months of riots in 2020. And I think now Americans have a very good and clear sense that these are not organic riots necessarily, these are not spontaneous.”
Hemingway seemed skeptical of the proposition that a majority of Americans would view the deployment of troops as escalatory.
“I think the American people are broadly sympathetic to Trump,” Hemingway said. “Trump campaigned on mass deportations. His immigration policy is still <a href="https://www.realclearpolling.com/stories/analysis/trumps-immigration-policies-remain-popular-polls">broadly popular</a>. And the idea that Democrats are attaching support of violent riots to that, or trying to make Trump look like the extremist, it&#8217;s just, this is not five years ago…at this point in time, I think the average American would, you know, trust the first 700 Marines in the phone book at 29 Palms over the elected leadership of Los Angeles to do what&#8217;s right for the people of that city.”

MRN 6.12.25 Thumbnail_V1

Morning Brief: A China Trade Deal And More Riots

China

Communist China

Howard Lutnick

Immigration and Customs Enforcement (ICE)

Media

Morning Wire

Riots

The latest data from the Consumer Price Index released on Wednesday showed — for the third straight month — that President Donald Trump&#8217;s tariffs have had little effect on Americans&#8217; wallets, defying economists&#8217; expectations.
The CPI rose 2.4% in May compared to last year, which was a slight increase from the 2.3% reported in April, according to the <a href="https://www.bls.gov/news.release/cpi.nr0.htm">Bureau of Labor Statistics</a>. Despite the continued solid numbers, economists and top Fed officials still predict price increases from Trump&#8217;s tariffs to hit over the summer, MarketWatch <a href="https://www.marketwatch.com/story/inflation-still-not-showing-tariff-related-increase-cpi-shows-fed-expected-to-stay-on-hold-c9cfa941">reported</a>. The Wednesday CPI report was celebrated by Trump, who urged the Fed to lower the interest rates by &#8220;ONE FULL POINT.&#8221;
&#8220;CPI JUST OUT. GREAT NUMBERS! FED SHOULD LOWER ONE FULL POINT,&#8221; Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114665067086649498">posted</a> on Truth Social. &#8220;WOULD PAY MUCH LESS INTEREST ON DEBT COMING DUE. SO IMPORTANT!!!&#8221;
While the index for food increased slightly in May after falling in April, energy and gas indexes decreased by 1% and 2.6% from last month, respectively. Prices also dropped for used cars, plane tickets, and clothing, which is mainly imported from foreign countries and subject to Trump&#8217;s stiff duties, MarketWatch reported.
&#8220;Core inflation,&#8221; which takes out food and energy prices and is used as a more stable indicator of the future economy, increased by 0.1% from last month, which was below economists&#8217; predictions. Year-over-year &#8220;core inflation&#8221; remained steady at 2.8%. Wells Fargo senior economist Michael Pugliese told <a href="https://www.cnn.com/2025/06/11/economy/us-consumer-price-index-may">CNN</a> the report was a &#8220;good reading&#8221; on inflation but added that he believes &#8220;it’s too early to draw any conclusions from whether the tariffs are having ‘X’ effect or ‘Y’ effect.”
Some economists argue that Americans haven&#8217;t been hit by price increases yet because businesses loaded up their inventories before Trump&#8217;s tariffs went into effect and have been able to hold off on hiking prices, The New York Times <a href="https://www.nytimes.com/2025/06/11/business/cpi-may-inflation-tariffs.html">reported</a>.
The CPI report was released as President Trump announced that a trade deal had been reached with China and that it awaits “final approval” from him and Chinese President Xi Jinping, as The Daily Wire <a href="https://www.dailywire.com/news/trump-unveils-terms-of-done-trade-deal-with-china?topStoryPosition=undefined&amp;author=Leif+Le+Mahieu&amp;category=News&amp;elementPosition=3&amp;row=1&amp;rowHeadline=Top+Stories&amp;rowType=Top+Stories&amp;title=Trump+Unveils+Terms+Of+%E2%80%98Done%E2%80%99+Trade+Deal+With+China">reported</a>. The deal includes an agreement on rare earth minerals, tariffs, and allowing Chinese students to study at American universities. A trade deal with China would mark the most significant step taken by the Trump administration on the economy since the president imposed massive tariffs on nearly every country in the world.
Under the agreement, however, the United States would still impose a 55% tariff on Chinese products while American goods would still be hit with a 10% tariff from China, according to Trump.

‘Great Numbers!’: Report Shows No Significant Tariff-Related Price Jumps For 3rd Straight Month

Economics

Treasury Secretary Scott Bessent challenged CBS journalist Margaret Brennan on Sunday over the potential inflationary impact of President Donald Trump&#8217;s tariffs.
In a &#8220;Face the Nation&#8221; <a href="https://www.cbsnews.com/news/scott-bessent-treasury-secretary-face-the-nation-06-01-2025/" target="_blank" rel="noopener">interview</a>, Brennan insisted &#8220;the reality is there will either be less inventory or things at higher prices, or both.&#8221; Bessent shot back, <a href="https://www.cbsnews.com/news/scott-bessent-treasury-secretary-face-the-nation-03-02-2025/" target="_blank" rel="noopener">alluding</a> to a previous conversation they had in March, days before Trump unleashed his &#8220;Liberation Day&#8221; tariffs upon the world.
&#8220;Margaret, when we were here in March, you said there was going to be big inflation. There hasn&#8217;t been any inflation,&#8221; Bessent said. &#8220;Actually, the inflation numbers are the best in four years. So why don&#8217;t we stop trying to say this could happen, and wait and see what does happen.&#8221;
<blockquote class="twitter-tweet" data-media-max-width="560">
.<a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a>: &#8220;When we were here in March, you said there was going to be big inflation. There hasn&#8217;t been any inflation. Actually, the inflation numbers are the best in four years. So why don&#8217;t we stop trying to say this COULD happen — wait and see what DOES happen.&#8221; 🔥 <a href="https://t.co/1LeTZf2UX1">pic.twitter.com/1LeTZf2UX1</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1929188418249965629?ref_src=twsrc%5Etfw">June 1, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Earlier, Brennan told Bessent that when he was on the program in March, the two of them were &#8220;trying to gauge&#8221; how American consumers might be affected by the tariffs. She then asked the Cabinet official where he is anticipating price increases.
&#8220;We wanted to make sure that there aren&#8217;t price increases, Margaret. And thus far, there have been no price increases. Everything has been alarmist,&#8221; Bessent said, adding that the &#8220;inflation numbers are actually dropping.&#8221;
<blockquote class="twitter-tweet" data-media-max-width="560">
.<a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a>: &#8220;We wanted to make sure that there aren&#8217;t price increases, Margaret — and thus far, there have been no price increases. Everything has been alarmist. The inflation numbers are actually dropping. We saw the first drop in inflation in four years.&#8221; <a href="https://t.co/asuc8YnHYZ">pic.twitter.com/asuc8YnHYZ</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1929187165830869432?ref_src=twsrc%5Etfw">June 1, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
A couple of weeks ago, the Labor Department <a href="https://www.dailywire.com/news/inflation-hits-lowest-point-in-over-4-years-as-april-report-better-than-expected" target="_blank" rel="noopener">released</a> data showing that inflation hit its lowest point — 2.3% — in four years, as Trump pursues trade deals with China and other countries hit by tariffs.
Brennan pressed Bessent on retailers such as Walmart, Best Buy, and Target <a href="https://www.cnbc.com/2025/05/31/trump-tariffs-here-are-the-retailers-raising-prices.html" target="_blank" rel="noopener">raising prices</a>. In response, Bessent noted that other companies, including <a href="https://www.axios.com/2025/05/20/home-depot-stock-prices-tariffs" target="_blank" rel="noopener">Home Depot</a> and Amazon, have taken a different tack. And he pointed out, &#8220;I know what the South China Morning Post wrote within the past 24 hours that 65% — 65%! — of the tariffs will likely be eaten by the Chinese producers.&#8221;
&#8220;So are there five or eight areas that you have identified, as you said back in March, where American consumers will be able to have lower prices, or should be warned of higher prices?&#8221; Brennan asked.
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&#8220;Well, a lot of it&#8217;s already working its way through the system,&#8221; Bressent replied. &#8220;So we&#8217;ve seen a substantial decrease in gasoline and energy prices. So that&#8217;s down 20% year over year. We&#8217;ve seen the food prices go down, these notorious egg prices. Through the good work of President Trump and [Agriculture] Secretary [Brooke] Rollins, egg prices have collapsed. So we&#8217;re seeing more and more.&#8221;
He added: &#8220;And what we want to do is even that out across all sections of the economy. So inflation has been very tame. Consumer earnings were up 0.8% last month, which is a gigantic increase for one month. So real earnings minus low inflation is great for the American people, and that&#8217;s what we&#8217;re seeing.&#8221;
Brennen also questioned Bessent about the &#8220;One Big, Beautiful Bill&#8221; that passed through the GOP-led House and is now under consideration by the Republican-controlled Senate.
&#8220;In it is increase or suspension to the debt limit that you need delivered on by mid-July. How close of a brush with default could this be, given how massive some of the Senate changes are expected to be to the other parts of the bill?&#8221; Brennan asked.
&#8220;Well, first of all, Margaret, I will say the United States of America is never going to default. That is never going to happen. &#8230; We are on the warning track and we will never hit the wall,&#8221; Bessent said, adding later, &#8220;We don&#8217;t give out the X date because we use that to move the bill forward.&#8221;
<iframe loading="lazy" title="Scott Bessent &quot;confident&quot; U.S.-China trade details &quot;will be ironed out&quot; when Trump, Xi talk" width="500" height="281" src="https://www.youtube.com/embed/jTK0fDt9K78?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>

US Treasury Secretary Scott Bessent Interview

Treasury Secretary Busts ‘Alarmist’ Inflation Predictions

CBS News

Margaret Brennan

Recently, the news stories in the media have been coming so fast and furious they’re almost like a group of muscular bald men driving hot cars out of airplanes, landing them on top of other cars, and then driving away at high speed while firing a rocket launcher out the window&#8230; because they’re fast and… well, never mind.
Anyway, I began to wonder: how can the news media report all this news in a way that reflects the outlooks of Americans everywhere across this great land, from the pine forests of Vermont to the golden wheat fields of Kansas, across the vast expanses of Texas to the sun-baked beaches of the Pacific Coast? So I decided I would take a look at the headlines of news outlets from 40th Street in Manhattan all the way to 47th Street — because that’s about all of them.
So for instance, in the news, inflation slowed to its lowest rate in more than four years.
Here’s the headline from The Wall Street Journal: &#8220;Trump’s Tariffs to Cause Massive Inflation Very, Very Soon, Experts Who Predicted Massive Inflation Because of Trump’s Tariffs Very Soon Say.&#8221;
<h3><a href="https://www.dailywire.com/show/the-andrew-klavan-show" target="_blank" rel="noopener">WATCH: The Andrew Klavan Show</a></h3>
Here’s One From The New York Times: &#8220;Hardworking Migrant Juan Ortega May Lose His Chicken Farm as Trump’s Policies Cause the Bottom to Fall Out of Egg Prices.&#8221;
And here’s the Report from NPR: &#8220;How Lower Inflation Spurred the Rise of Hitler,&#8221; a historical report read by a person with a very soft, sleepy voice that will make you want to hurt yourself just to make it stop.
Another news story: Trump negotiated a ceasefire between hostile nuclear powers India and Pakistan.
From The Wall Street Journal: &#8220;Nuclear Devastation Averted, Leaving Millions Alive to Suffer Massive Inflation Very Soon Because of Donald Trump’s Tariffs, Experts who Predicted Massive Inflation Very Soon Because of Donald Trump’s Tariffs Say.&#8221;
Or from The New York Times: &#8220;Environmentalists Worry that Trump’s Reckless Actions on the Indian Subcontinent Will Leave Earth’s Population at Levels Sure to Cause Devastating Climate Change.&#8221;
Or the story as reported by NBC News: &#8220;Biden’s Policy of Mindlessly Prolonging Foreign Wars to No Effect Finally Pays Big Dividends by Bringing Peace Deal Between India and Pakistan.&#8221;
In other news, Trump negotiated the release of Edan Alexander, the last living American hostage being held by vampiric Palestinian monsters.
The headline in The Wall Street Journal reads: &#8220;Released Hostage Finds Himself in a World Soon to be Wracked by Massive Inflation Caused by Trump’s Tariffs, According to Experts.&#8221;
The New York Times headline was: &#8220;Sad Little Palestinian Boy Jihad Muhammed Sharia Jihad Jihad Muhammed Sheds Sad Tears of Very Sad Sadness as Genocidal Israelis Steal the Wonderful Friend his Parents Kept Chained up for Him in the Basement.&#8221;
And of course, CNN featured an interview with a Columbia University professor who once read part of a book on Israel and says the Jews sound genocidal to him until Scott Jennings knocks him unconscious and jumps up and down on his face.
Then there was the news that Donald Trump had negotiated several trillion dollars in American investment from Saudi Arabia.
The Wall Street Journal reported the story with the headline: &#8220;Saudis Want to Invest in America but Whoa Nellie, Just Wait Till They See the Massive Inflation that’s Going to be Caused by Trump’s Tariffs Any Day Now, Experts Say.&#8221;
The Headline in The New York Times reads: &#8220;Sad Yale Historian Who Studies Fascism Says He Is Leaving America Because Trump’s Presidency Will Look Just Like Fascism as Soon as It Looks Like Fascism.&#8221;
And CBS reported: &#8220;Weak Trump Caves to Saudi Demands that he take their Money.&#8221;
In other news, Trump struck a deal with China to free us from their hammerlock on our supply lines, brought down drug prices, bombed the Houthis into submission, opened U.K. markets to American farmers, made progress on a nuclear deal with Iran, and the headlines say….. oh, screw it.
***
This excerpt is taken from the opening satirical monologue of “<a href="https://www.dailywire.com/show/the-andrew-klavan-show" target="_blank" rel="noopener">The Andrew Klavan Show</a>.”
The views expressed in this satirical article are those of the author and do not necessarily represent those of The Daily Wire.
Andrew Klavan is the host of “The Andrew Klavan Show” at The Daily Wire. Follow him on X: <a href="https://x.com/andrewklavan" target="_blank" rel="noopener">@andrewklavan</a>
Klavan is the bestselling author of numerous books, including the Cameron Winter Mystery series. The fourth installment, “<a href="https://www.amazon.com/gp/product/1613165536?ref_=dbs_m_mng_rwt_calw_thcv_3&amp;storeType=ebooks" target="_blank" rel="noopener">A Woman Underground.</a>” His most recent nonfiction release is “<a href="https://www.amazon.com/Kingdom-Cain-Finding-Literature-Darkness/dp/0310368340/?_encoding=UTF8&amp;pd_rd_w=nMYjR&amp;content-id=amzn1.sym.bc3ba8d1-5076-4ab7-9ba8-a5c6211e002d&amp;pf_rd_p=bc3ba8d1-5076-4ab7-9ba8-a5c6211e002d&amp;pf_rd_r=133-8344803-2786917&amp;pd_rd_wg=7a8J3&amp;pd_rd_r=5791ea0f-6d96-4732-9d6a-3a4e6b348bb5&amp;ref_=aufs_ap_sc_dsk" target="_blank" rel="noopener">The Kingdom of Cain: Finding God in the Literature of Darkness.</a>” (May 2025, Zondervan/HarperCollins).

Donald Trump, Qatari Emir Sheikh Tamim bin Hamad Al Thani

Trump’s Global Triumphs Cause Inflation Apocalypse, Say Analysts Cheering For Inflation Apocalypse

Andrew Klavan

Foreign Policy

Legacy Media

Satire

The annual inflation rate was lower than experts expected in April, coming in at 2.3%, its lowest point since February 2021.
The Labor Department on Tuesday reported that the consumer price index rose a seasonally adjusted 0.2% in April, according to <a href="https://www.cnbc.com/2025/05/13/cpi-inflation-april-2025.html" target="_blank" rel="noopener">CNBC</a>. While April&#8217;s 0.2% increase from the same month last year was a jump from the 0.1% year-over-year drop in March, the 2.3% inflation rate was just below the forecast of 2.4%, giving President Donald Trump some good economic news shortly after his &#8220;Liberation Day&#8221; tariffs went into effect. The White House <a href="https://x.com/RapidResponse47/status/1922282764780355920" target="_blank" rel="noopener">celebrated</a> the news in a post on X, crediting the &#8220;TRUMP EFFECT.&#8221;
&#8220;For the last several years, hardworking families have faced an affordability crisis. Finally, with @POTUS at the helm, Americans are breathing a sigh of relief — every dollar is going further and workers are able to keep more of their hard-earned paychecks!&#8221; Labor Secretary Lori Chavez-DeRemer <a href="https://x.com/SecretaryLCD/status/1922287250882109733" target="_blank" rel="noopener">added</a>.
Food prices saw a slight decline of 0.1% from March to April, with the cost of eggs falling 12.7%. Used car prices were also down in April, while month-over-month energy prices increased 0.7%, shelter costs rose 0.3%, and new car prices remained the same, according to the consumer price index <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener">report</a>. The year-over-year index for energy was down 3.7%, gasoline dropped 11.8% over the past 12 months, and the fuel oil index saw a 9.6% decline over that period. The index for electricity was up 3.6% over the last 12 months, and the natural gas index rose 15.7%, the report added.
The report comes as President Trump makes progress on a trade deal with China, providing some tariff relief. The Trump administration <a href="https://www.dailywire.com/news/u-s-china-release-details-of-agreement-to-dramatically-slash-tariffs" target="_blank" rel="noopener">announced</a> on Monday that it agreed to slash its reciprocal tariff on China to 10% for 90 days while the 20% fentanyl tariff remains in place. In return, China also dropped its retaliatory tariff on U.S. goods to 10%. Those reductions are set to go into effect on Wednesday as the two countries seek to continue negotiations.
Last week, Trump also struck a deal with the United Kingdom, giving the United States more access to the British economy and maintaining the tariff on U.K. imports at 10%. In return, the United Kingdom will be allowed to export up to 100,000 vehicles to the United States for a 10% tariff, a reduction of Trump&#8217;s 25% tariff on foreign auto imports.
Some economic experts predict that the brunt of Trump&#8217;s tariffs will not reflect in economic data until the summer, according to <a href="https://www.nytimes.com/2025/05/13/business/inflation-prices-tariffs.html" target="_blank" rel="noopener">The New York Times</a> and The <a href="https://www.wsj.com/economy/trade/cpi-inflation-april-2025-interest-rate-8febd2d2?mod=WSJ_home_mediumtopper_pos_1" target="_blank" rel="noopener">Wall Street Journal</a>.

Inflation Hits Lowest Point In Over 4 Years As April Report Better Than Expected

Food prices

Gas Prices

White House

On Thursday morning, the day after the Federal Reserve voted to leave the benchmark interest rate between 4.25% and 4.5%, President Donald Trump targeted Federal Reserve Chairman Jerome Powell, calling him a “fool who doesn’t have a clue” while adding, “I like him very much!”
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF ‘TOO LATE!’ ENJOY!” Trump wrote on Truth Social.
<blockquote class="twitter-tweet">
“Too Late” Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and “eggs”) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF “TOO LATE!” ENJOY!
From…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) <a href="https://twitter.com/TrumpDailyPosts/status/1920433381654909340?ref_src=twsrc%5Etfw">May 8, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The Fed stated that it doesn’t want to lower interest rates until economic forecasts — which have been in the doldrums since Trump announced his tariff policy — become brighter, adding that the “risks of higher unemployment and higher inflation have risen,” CNBC <a href="https://www.cnbc.com/2025/05/08/trump-calls-fed-chair-jerome-powell-a-fool-after-central-bank-keeps-rates-steady.html" target="_blank" rel="noopener">reported</a>.
“We are always going to do the same thing, which is we are going to use our tools to foster maximum employment and price stability for the benefit of the American people,” Powell — who was initially nominated to his post by Trump in November 2017, then reappointed by President Joe Biden — said. “We are always going to consider only the economic data, the outlook, the balance of risks and that’s it. That’s all we are going to consider.”
In February 2024, Trump said he would not reappoint Powell, whose term ends in May 2026, <a href="https://www.cnn.com/2024/02/02/economy/trump-reappoint-fed-chair-jerome-powell" target="_blank" rel="noopener">telling</a> Fox Business Network’s Maria Bartiromo, “It looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected, I don’t know. I think he’s going to do something to probably help the Democrats, I think, if he lowers interest rates.”
In mid-April, Powell <a href="https://www.nbcchicago.com/news/local/who-appoints-fed-chair-and-can-trump-fire-jerome-powell-what-to-know/3724729/" target="_blank" rel="noopener">told</a> the Economic Club of Chicago, &#8220;For the time being, we are well positioned to wait for greater clarity&#8221; on the impact of Trump’s policy changes. Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114352766082542122">responded</a> the next day, “The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
On Sunday, Trump <a href="https://www.nbcnews.com/politics/trump-administration/read-full-transcript-president-donald-trump-interviewed-meet-press-mod-rcna203514" target="_blank" rel="noopener">spoke</a> of Powell on “NBC’s “Meet The Press,&#8221; saying Powell should lower interest rates, adding, “We are at a perfect time. It’s already late. But he should lower interest rates.”
When host Kristen Welker asked if he would rule out removing Powell, Trump replied, “I get to change him very quickly anyway.”
“You don’t have plans to remove him before 2026 when his time’s up?” Welker pressed.
“No, no, no. That was a total — why would I do that? I get to replace the person in another short period of time,” Trump answered.

MixCollage-08-May-2025-11-15-AM-5067

Fed Says It Won’t Lower Interest Rates. Trump Calls Powell A ‘Fool Who Doesn’t Have A Clue.’

Executive

President Donald Trump on Thursday called for Federal Reserve Chair Jerome Powell to cut interest rates, saying that his termination couldn&#8217;t come &#8220;fast enough.&#8221;
Trump’s call on Truth Social comes a day after Powell delivered remarks critical of the president at the Economic Club of Chicago. Trump contrasted Powell’s handling of interest rates with the European Central Bank (ECB), which announced interest rate cuts on Thursday. 
“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114352766082542122" target="_blank" rel="noopener">posted</a> on his social media network. “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
Trump has <a href="https://truthsocial.com/@realDonaldTrump/posts/114280322706682564">repeatedly</a> called for Powell to cut interest rates, saying that the Fed chair was “playing politics” with the economy earlier this month. 
On Wednesday, Powell <a href="https://www.youtube.com/watch?v=1o_9kO0zZQg" target="_blank" rel="noopener">said</a> that he believed Trump’s tariffs would cause inflation. Trump has imposed a baseline 10% tariff on most American trading partners, a 145% tariff on Chinese goods, and select tariffs on other products, such as automobiles. 
“Tariffs are highly likely to generate at least a temporary rise in inflation,&#8221; Powell said. &#8220;The inflationary effects could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored.&#8221; 
Powell added that he was waiting “for greater clarity before considering any adjustments to our policy stance.”
“We’re always going to be aiming for maximum employment and price stability,&#8221; he said. “I do think we’ll be moving away from those goals for the balance of this year, or at least not making any progress, and then we’ll resume that progress as we can.”
Trump has said that the tariffs are generating billions in revenue for the federal government and are necessary to get more favorable trade deals for the United States. On Thursday, he <a href="https://truthsocial.com/@realDonaldTrump/posts/114353201227355474" target="_blank" rel="noopener">said</a> that “every nation” wants to meet over the tariffs, including China. The president and his staff met with Japan on Wednesday and are expected to meet with Italy on Thursday to discuss the tariffs. 
Powell&#8217;s post as chair of the Fed runs through May 2026. He previously <a href="https://www.politico.com/live-updates/2024/11/07/congress/feds-powell-says-trump-cant-fire-him-00188311" target="_blank" rel="noopener">said</a> that it would be unlawful for Trump to remove him.

President Trump Announces Nominee For Federal Reserve Chair Of The Board Of Governors

Trump Attacks Fed Chair Jerome Powell: ‘Termination Cannot Come Fast Enough’

Inflation cooled faster than economists’ expectations in the month of March, though the impacts of tariffs could still mitigate those gains.
The Consumer Price Index (CPI), an estimate of the price of all household consumer goods and services, <a href="https://www.barrons.com/livecoverage/cpi-report-inflation-data-march" target="_blank" rel="noopener">rose</a> by 2.4% year-over-year in March, beating economists’ expectations of a 2.6% increase, though still higher than the Federal Reserve’s goal of 2%. Core CPI, a measure of CPI excluding more volatile food and fuel prices, rose 2.8% year-over-year, less than the predicted 3%.
While inflation is cooling, Federal Reserve officials and experts have signaled that interest rate cuts might not happen in the near term. Fed Chairman Jerome Powell said Friday that President Donald Trump’s fast-moving trade policies should be given some time before the Fed looks at interest rate adjustments either way.
Mohamed El-Erian, president of Queens’ College, Cambridge, and chief economic adviser at Allianz SE, made a similar comment Thursday morning on X, noting the positive inflation signs might not immediately impact interest rates.
“US CPI inflation for March was better (lower) than the consensus forecasts — across the board. The monthly price changes came in at -0.1% for headline and 0.1% for core. This took the annual measures down to 2.4% and 2.8%, respectively — low levels not seen for several years,” El-Erian said.
“The forward-looking information content of these numbers is heavily influenced by how you think all the news on tariffs will impact price/wage-setting behavior, as well as household/corporate impact on aggregate demand,” he added.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
US CPI inflation for March was better (lower) than the consensus forecasts — across the board. The monthly price changes came in at -0.1% for headline and 0.1% for core. This took the annual measures down to 2.4% and 2.8%, respectively — low levels not seen for several years.… <a href="https://t.co/xDeYFZ8y0W">https://t.co/xDeYFZ8y0W</a>
&mdash; Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1910313276660916421?ref_src=twsrc%5Etfw">April 10, 2025</a></blockquote>
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Minneapolis Fed President Neel Kashkari wrote in an <a href="https://www.minneapolisfed.org/article/2025/potential-implications-of-announced-tariffs-for-monetary-policy" target="_blank" rel="noopener">essay</a> Wednesday morning – before the inflation report or Trump’s 90-day pause on most tariffs on most countries was announced – that interest rates should stay the same until tariffs have more time to take effect.
“In my view, the hurdle to change the federal funds rate one way or the other has increased due to the tariffs. Given the paramount importance of keeping long-run inflation expectations anchored and the likely boost to near-term inflation from tariffs, the bar for cutting rates even in the face of a weakening economy and potentially increased unemployment is higher,” Kashkari wrote. “Given that we don’t yet know how many countries will respond to the tariffs and whether we are beginning a trade war with tit-for-tat tariff increases, the risk of unanchoring inflation expectations seems to have increased notably.”

Inflation Cools Faster Than Expected In March: ‘Low Levels Not Seen For Several Years’

consumer Price Index

On Wednesday, in an apparent response to the latest tariff increase by President Donald Trump on China to 104%, the yield – or interest rate – on the benchmark 10-year U.S. Treasury bond rose again, possibly spurring a cut in interest rates by the Federal Reserve.
“The exodus from longer-dated US Treasuries accelerated, fueling the biggest selloff since 2020 in what are supposed to be the world’s safest assets,” Yahoo Finance <a href="https://finance.yahoo.com/news/treasuries-fire-sale-sends-long-065717018.html" target="_blank" rel="noopener">reported</a>. U.S. Bonds are backed by the government, and the U.S. economy has been the strongest in the world for decades, so investors think the government will not default on them, making them a safe proposition. But they become less valuable as inflation rises, and some investors have been voicing concern that inflation may well result if President Trump’s tariffs are too harsh and are left in place.
On Monday, JP Morgan Chase CEO Jamie Dimon <a href="https://www.nbcnews.com/politics/trump-administration/jpmorgan-ceo-jamie-dimon-says-trump-tariffs-will-boost-inflation-slow-rcna199956" target="_blank" rel="noopener">warned</a> of inflationary pressure, saying, “Whatever you think of the legitimate reasons for the newly announced tariffs — and, of course, there are some — or the long-term effect, good or bad, there are likely to be important short-term effects. We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases for domestic products. Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
“This is a fire sale of Treasuries,” Calvin Yeoh of Blue Edge Advisors said. “I haven’t seen moves or volatility of this size since the chaos of the pandemic.”
A dramatic selloff of U.S. bonds resulted on Wednesday as investors seemingly lost confidence in the American economy. “The 10-year Treasury yield has risen 36 basis points (bps) to 4.35% this week alone as prices fall sharply. If sustained, that would mark the biggest weekly jump since 2013,” <a href="https://www.reuters.com/markets/global-markets-tariffs-bonds-2025-04-09/" target="_blank" rel="noopener">Reuters</a> noted. “The yield on a 30-year bond briefly traded above 5 percent,” The New York Times <a href="https://www.nytimes.com/2025/04/09/business/economy/us-bonds-trump-truss-treasury-yield.html" target="_blank" rel="noopener">added</a>.
“Markets are pricing a growing probability of an emergency [interest rate] cut, just as we saw during the Covid turmoil and the height of the GFC [global financial crisis] in 2008,” Jim Reid of Deutsche Bank <a href="https://www.theguardian.com/business/2025/apr/09/dramatic-sell-off-of-us-government-bonds-as-tariff-war-panic-deepens" target="_blank" rel="noopener">stated</a>.
“There is a temporary ‘buyer’s strike’ in the US bond market,” Homin Lee Lombard Odier Ltd. <a href="https://www.investmentnews.com/industry-news/treasuries-suffer-sharp-fire-sale-sell-off/260049" target="_blank" rel="noopener">theorized</a>. “If the situation becomes more worrisome the US Fed will have some tools it can utilize for market stability.”

U.S. Savings Bond Background

Dramatic Selloff Of U.S. Bonds Hits, Investors Worried About U.S. Economy

Treasury Bonds

Peter Navarro, who is the White House senior counselor for trade and manufacturing, defended President Donald Trump&#8217;s plans for implementing tariffs on imports ahead of what is anticipated to be a major escalation in the trade war next week.
Trump, who has already issued some tariffs during his second term, has declared that April 2 will be <a href="https://www.dailywire.com/news/trump-slaps-tariff-on-all-countries-that-buy-oil-from-venezuela" target="_blank" rel="noopener">&#8220;Liberation Day&#8221;</a> featuring a wave of new reciprocal tariffs followed by a <a href="https://www.dailywire.com/news/trump-touts-businesses-coming-back-with-new-plan-for-25-tariffs-on-vehicles" target="_blank" rel="noopener">25% tariff</a> on automotive imports to the United States on April 3.
Polls have shown that Americans fear the tariffs on imports will hurt the U.S. economy and jobs, but during an interview on &#8220;Fox News Sunday,&#8221; Navarro urged people to &#8220;trust in Trump&#8221; as he harkened back to the &#8220;example&#8221; set during the president&#8217;s first term.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
.<a href="https://twitter.com/RealPNavarro?ref_src=twsrc%5Etfw">@RealPNavarro</a>: &quot;We have the example from the first term. We know that we imposed historically high tariffs&#8230; and all we got out of that was prosperity and price stability&#8230; the Germans, the Japanese, the South Koreans and the Mexicans have taken our manufacturing capability.… <a href="https://t.co/1nII1TVKHF">pic.twitter.com/1nII1TVKHF</a>
&mdash; Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1906342561553301753?ref_src=twsrc%5Etfw">March 30, 2025</a></blockquote>
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&#8220;We know that we imposed historically high tariffs on China. We imposed aluminum and steel tariffs. We imposed on washing machines, on solar, and all we got out of that, Shannon — all we got out of that was prosperity and price stability,&#8221; Navarro told anchor Shannon Bream.
&#8220;And the reason why we&#8217;re not going to see inflation is because the foreigners are going to eat most of it. They have to; we&#8217;re the biggest market in the world, Shannon,&#8221; he added. &#8220;And they have to be here. They have to be here. And so they&#8217;re going to cut their prices to absorb that.&#8221;
Navarro said the &#8220;bigger picture here is restoring the American manufacturing base,&#8221; adding, &#8220;We don&#8217;t have that. We&#8217;re an assembly thing.&#8221;
Looking back to the 1940s, Navarro said there was &#8220;something called the &#8216;arsenal of democracy&#8217; back in World War II. That was how we beat the Japanese and the Germans with our military might.&#8221;
&#8220;When General George S. Patton &#8220;went to Berlin, it was with trucks, Jeeps, and tanks that were made in the auto plants of the Midwest,&#8221; Navarro continued. &#8220;Right now, the only thing that looks like the Midwest back then is Mexico. You go across the diaspora of cities in Mexico, there&#8217;s football-field-sized — 50 football field-sized assembly plants that are down there making the engines for here. We can&#8217;t do that.&#8221;

Peter Navarro

Tariff Escalation Won’t Cause Inflation; Foreigners Will ‘Eat Most Of It’: Trump Trade Counselor

U.S.

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