Republican Louisiana Sen. John Kennedy said on Fox Business Tuesday that he’s uncertain about the impact of President Donald Trump’s recently imposed tariffs.
Trump dubbed April 2 as “Liberation Day,” a date when he plans to introduce more tariffs that he says will reduce America’s reliance on foreign products. During an appearance on “Kudlow,” Kennedy outlined what he said are the possible consequences of these tariffs, ranging from significant economic growth to potential recession.
“I believe that the recipe for lowering prices is to reduce government spending, deregulate the economy, extend the Trump tax cuts and redesign the tax code. I know that will work. I don’t know what the impact of tariffs will be,” Kennedy told host Larry Kudlow.
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Kennedy discussed the administration’s aggressive push towards onshoring.
“It may be positive, but I just don’t know, and no one knows. The best-case scenario is that you’re absolutely right that tariffs cause businesses in the short run to move here,” Kennedy said. “They hire people. The economy explodes.”
The senator, however, did not shy away from painting a less than rosy picture if things do not go as planned.
“Worst-case scenario, the tariffs cause inflation. Inflation causes the Federal Reserve to raise interest rates. That puts pressure on labor costs. People are laid off. We go into a recession,” Kennedy added. (RELATED: ‘It’s Silly And It’s Stupid And It Doesn’t Work’: Reagan Economist Blasts Proposed Tax Hikes)
Kennedy said tariffs could jeopardize the 2026 midterm elections.
“We lose the midterms. And President Trump’s four-year term just became a two-year term because if we lose the House then the president’s going to spend his last two years defending himself against frivolous impeachment procedures,” Kennedy said. “That’s the best case and the worst case. All I’m saying is I’m being very candid. No one knows the impact of these tariffs. In the long run I think we’ll be fine. But no one knows the short-run impact.”
Trump has announced plans to implement “reciprocal” tariffs to match those imposed by other countries, alongside a new 25% tariff on imported cars and essential auto parts starting April 2. These measures aim to revitalize domestic car manufacturing. In response to illegal immigration and the fentanyl crisis, Trump imposed a 25% tariff on Canada and Mexico, escalating to 50% on Canadian steel and aluminum, though tariffs on Mexico were delayed until April 2 after discussions with Mexican President Claudia Sheinbaum.
Following the initial tariff announcement in February, Mexico deployed 10,000 National Guard troops to the U.S.-Mexico border, and Canada appointed a fentanyl czar to mitigate the tariffs’ impact. Trump also imposed a 20% tariff on Chinese imports due to China’s involvement in the fentanyl epidemic.
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