The White House said it will keep its tariffs a week after voters punished Republicans over rising prices. Former Trump economic advisor Gary Cohn warned that consumers pay the cost, and a new poll shows majority support for repeal.
The White House signaled it would stay the course on tariffs one week after the midterm elections. Voters had punished Republicans over rising prices. Gary Cohn, Trump's chief economic advisor in his first administration, warned that Americans are footing the bill.
White House defends tariffs at B20 summit
Jim Goyer, director of the White House Office of Public Liaison, defended tariffs as a tool to rebuild U.S. manufacturing, secure supply chains and protect national security. He spoke Tuesday at the B20 summit, hosted by the U.S. Chamber of Commerce in Washington.
Cohn spoke in an onstage interview later that day. According to CNBC, Cohn offered a sharply different view: "Tariffs are a consumption tax on the U.S. consumer." He argued the duties raise prices and force Americans to reconsider purchases.
Prices and polls add pressure
The backlash showed at the ballot box. According to the CNBC Voter Poll, roughly two-thirds of voters said Trump's policies contributed to inflation. A Reuters/Ipsos poll released Tuesday found 62% of Americans supported repealing the tariffs, while 21% approved of his handling of the cost of living.
New government data added to the pressure. Consumer prices rose 0.4% in October, exceeding economists' expectations. Tariffs are not the only factor, and the war with Iran has pushed energy costs sharply higher. A Federal Reserve Bank of New York study estimated that about 26% of tariff increases were passed through to consumer prices.
Businesses adapt, Democrats eye the tariffs
UPS CEO Carol Tomé said customers are moving production and sourcing closer to home as supply chains become more regional. Dow executive chairman Jim Fitterling acknowledged tariffs can drive up prices but called them necessary to combat unfair competition.
Democrats plan to challenge the tariffs when they take control of Congress in January. Trump's veto power and broad trade authority could make them difficult to overturn.
Source: CNBC
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