President Donald Trump’s top economic aide on Monday warned of more economic uncertainty stemming from the United States’ evolving tariff agenda.
“Absolutely, between now and April 2, there’ll be some uncertainty,” National Economic Council director Kevin Hassett said on CNBC’s “Squawk Box,” referring to the date on which Trump says he will unveil “reciprocal” tariff plans.
The remark acknowledges what many analysts and business leaders have complained about for weeks, as Trump’s sweeping tariff announcements — and subsequent revisions to them — sow confusion in the markets.
Yardeni Research President Ed Yardeni, who appeared on CNBC immediately before Hassett did on Monday, said, “Any day where the president doesn’t talk about tariffs is a good day for the market.”
When asked about Yardeni’s comment, Hassett said, “There should be clarity, absolute clarity.”
Hassett predicted that things will clear up after April 2, the date Trump says his administration will begin to impose tariffs on countries that either have their own duties, or that erect certain non-tariff trade barriers on U.S. products.
He also defended Trump’s use of tariffs and tariff threats against Mexico, Canada and China in the meantime. These tariffs were originally intended to pressure Mexico to step up immigration enforcement at the U.S. border, and to coerce all three countries into doing more to limit illicit fentanyl trafficking into the United States.
“Those have both been very positive developments that were related to the tariff policy,” Hassett said.
“But yeah, absolutely between now and April 2, there’ll be some uncertainty,” he said. “But as April comes along, markets will see that the reciprocal trade policy makes a great deal of sense.”
Trump, a vocal proponent of tariffs, has shrugged off calls for more clarity about his policies, even as they have stoked volatility in the markets.
“Confusion remains the name of the game, delaying investment decisions and affecting consumer confidence,” Bank of America Global Research said in an analyst note Monday morning.
“And the longer this regime continues, the more likely negative effects on business and consumer confidence will also persist,” the analysts wrote.
Trump and members of his administration have repeatedly declined to rule out the possibility that the U.S. could enter a recession this year.