Kevin Hassett

The April 2025 "Liberation Day" tariffs will not have a big effect on US consumers, because foreign exporters will bear much of the cost.

“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.”

Said on

6 April 2025 · ABC This Week interview with George Stephanopoulos as National Economic Council director, days after the April 2, 2025 tariff announcement. No window stated; inferred window is about one year.

Source

Trump's top economic adviser Hassett refutes tariffs raise costs for consumers · ABC News

Should come true

by 2026

How sure they sounded

I don't think

Categories

EconomyPoliticsGeopolitics

Importance

3 of 5 · Central claim about who pays for the largest US tariff increase in decades.

Outcome

Partly right

Inferred window: about a year after the April 2025 tariffs. The New York Fed (Feb 2026) found nearly 90% of the tariff burden fell on US firms and consumers, not foreign exporters, so his stated mechanism was wrong. Headline CPI inflation stayed moderate, about 2.4% year over year in January 2026, so the consumer-price effect was not dramatic. Mixed result, scored partial.

Evidence:

• https://libertystreeteconomics.newyorkfed.org/2026/02/who-is-paying-for-the-2025-u-s-tariffs/
• https://www.yahoo.com/news/articles/hassett-says-fed-staff-disciplined-184949956.html