Republican Louisiana Sen. John Kennedy said on Tuesday that President Donald Trump is uncertain about the impact of the recent tariffs on the Fox business.
Trump called April 2nd “liberation day.” This will introduce tariffs that would reduce US reliance on foreign products. When he appeared in “Kudlow,” Kennedy outlined what he said was a possible outcome of these tariffs, ranging from significant economic growth to the possibility of a recession.
“I think the recipe for lowering prices is to reduce government spending, relax economic regulations, extend Trump’s tax cuts, and redesign tax laws. I know that will work. I don’t know what the impact of tariffs will be,” Kennedy told host Larry Kudrow.
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Kennedy discussed the administration’s aggressive push for oversight.
“That may be positive, but I just don’t know, and no one knows. The best scenario is that you’re absolutely right for tariffs to move companies here in the short term,” Kennedy said. “They hire people. The economy explodes.”
But the senators weren’t embarrassed to draw less than rosy pictures if things didn’t go as planned.
“The worst case scenario, tariffs cause inflation. Inflation causes the Federal Reserve to raise interest rates. It puts pressure on labor costs. People are fired. We are in a recession,” Kennedy added. (Related: “It’s stupid, stupid and it doesn’t work”: Reagan economist blows up proposed tax hikes)
Kennedy said tariffs could put the 2026 midterm elections in danger.
“We’re losing our medium term, and President Trump’s four-year term has now become a two-year term because if he loses his home, the president will spend the last two years protecting himself from the frivolous bluffing each procedure,” Kennedy said. “It’s the best case, the worst case. What I’m saying is that I’m very open. No one knows the effects of these tariffs. I think it’s okay in the long run. But no one knows the short-term effects.”
Trump announced plans to implement “mutual” tariffs, which are consistent with those imposed by other countries, starting April 2, along with a new 25% tariff on imported cars and essential auto parts. These measures aim to stimulate domestic automobile manufacturing. In response to the illegal immigration and fentanyl crisis, Trump imposed 25% tariffs on Canada and Mexico, escalating to 50% on Canadian steel and aluminum, but Mexico’s tariffs were delayed until April 2nd after a discussion with Mexican President Claudia Sinbaum.
Following the initial tariff announcement in February, Mexico deployed a national guard of 10,000 people on the US-Mexico border, and Canada appointed Emperor Fentanyl to mitigate the impact of the tariffs. Trump also imposed a 20% tariff on Chinese imports as China is involved in the fentanyl epidemic.
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