Trump economic adviser insists no chance of recession this year: ‘100% not’
Despite concerns over the administration’s tariff regime, National Economic Council Director Kevin Hassett confidently predicted on Fox Business Network that the US would not experience a recession this year. When asked by host Maria Bartiromo about the possibility of a sustained downturn, Hassett responded with a resounding “100% not, 100% not.”
He pointed to the strong jobs numbers and anecdotal conversations with CEOs as evidence supporting his prediction. Hassett mentioned that CEOs are not seeing the uncertainty over tariffs as a major drag on production, with many companies increasing onshore production and stocking up on foreign goods to avoid potential future tariffs.
President Trump recently paused his reciprocal tariff rollout for 90 days to engage in talks with foreign nations for “bespoke” trade deals. While a 10% base tariff on most imports remains in effect, a 125% reciprocal duty on China, reaching as high as 145% on certain products, is still in place.
Stocks saw a rise in early trading as the administration announced that the reciprocal tariffs would not apply to electronics, which would only be subject to an existing 20% fentanyl tariff on Beijing. Despite acknowledging potential “transition problems” with adjusting to the levies, President Trump remains confident that his tariff policy will ultimately be beneficial.
The White House economic team is currently engaged in negotiations with foreign nations ahead of the July 8 tariff deadline. There is no set timeline for reaching deals with specific countries, and these negotiations could potentially involve foreign policy considerations such as military presence and foreign aid.
