Source: Fortune
Summary
White House National Economic Council Director Kevin Hassett criticized a New York Federal Reserve study that found 90% of the cost of President Trump’s tariffs falls on American households and businesses. Hassett called the study “an embarrassment” and suggested the authors should face repercussions. The study contradicts Trump’s claim that foreign countries bear the brunt of the tariff costs. Hassett argued that prices have come down, inflation is down, and real wages are up, but the study found that import prices increased by 11% more than prices not subject to tariffs.
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The numbers tell one story. The White House is pushing back on a growing body of research that shows Trump’s tariffs are hurting American consumers and businesses. The New York Fed study found that Americans are paying the majority of the cost of the tariffs. Hassett’s comments add to the administration’s attack on the central bank. The study’s findings contrast with Trump’s assertion that foreign countries pay for the tariffs. Hassett’s defense of the tariffs relies on selective data, ignoring the study’s conclusion that import prices have increased significantly.
The strategy enters a familiar phase. The White House is using a familiar playbook to discredit unfavorable research. The administration has previously attacked other studies that contradicted its economic policies. The New York Fed study is just the latest target. The White House’s response is a classic example of how companies and governments often react to unwelcome research: dismiss the findings, attack the authors, and cherry-pick data to support their own narrative.
Author: Evan Null
