From CNBC · Luke Fountain · · 2m
White House vows to press ahead with tariffs despite midterm backlash
Trump's administration defends its trade agenda even as voters punish Republicans over rising prices and a former top economic advisor warns consumers are footing the bill.
In brief
Trump's administration defends its trade agenda even as voters punish Republicans over rising prices and a former top economic advisor warns consumers are footing the bill. The White House committed to continuing tariffs despite Republican midterm losses over inflation, while former Trump advisor Gary Cohn warned the…
White House doubles down on tariffs
One week after Republicans lost midterm elections over rising prices, President Trump's White House signaled it would continue its tariff strategy.
“And we are just getting started. Our ambition is to continue this pace for the remainder of the president's term in office.”
Goyer's case for tariffs
Goyer argued tariffs are necessary to rebuild U.S.manufacturing, secure supply chains and protect national security.He told business leaders gathered at the B20 summit that the administration plans to maintain its current pace throughout Trump's term.
Cohn warns tariffs hit consumers
Gary Cohn, Trump's former chief economic advisor, offered a sharply different view at the same summit.
“Tariffs are a consumption tax on the U.S. consumer.”
Cohn's balance sheet argument
Cohn acknowledged tariffs generate revenue for the U.S.but argued the gains come at consumers' expense.He said while the government sees credit on the balance sheet, hardworking Americans pay the tariff through products they buy.
“There's the debit side of the balance sheet, which is every hardworking American who happened to pay the tariff through some product that they bought.”
Voters reject tariffs in polls
A Reuters/Ipsos poll released Tuesday found sixty-two percent of Americans support repealing Trump's tariffs, while just twenty-one percent approved of his handling of the cost of living.
Consumer prices rise faster than expected
New government data released Tuesday showed consumer prices rose zero point four percent in October, exceeding economists' expectations. Annual inflation reached three point seven percent in September, well above the Federal Reserve's two percent target.
Supply chains shift regional
Business leaders at the summit said companies are adapting to tariffs by moving production and sourcing closer to home.
“Supply chains are diversifying. Supply chains are regionalizing.”
Democrats face obstacles reversing tariffs
Democrats plan to challenge Trump's tariffs when they take control of Congress in January. However, Trump's veto power and broad trade authority could make the tariffs difficult to overturn, leaving the trade agenda largely intact.
The headline
The White House committed to continuing tariffs despite Republican midterm losses over inflation, while former Trump advisor Gary Cohn warned the duties act as a consumption tax on American consumers.
