Trump Adviser Fails Key Question on Tariff Price Increases

Yahoo

27-05-2025

White House National Economic Council Director Kevin Hassett dodged an important question Tuesday about Donald Trump's latest threat to place a 25 percent tariff on foreign-made Apple products.
During an appearance on CNBC's Squawk Box, a chipper Hassett was asked if there was an off-ramp to prevent an American-manufactured iPhone from costing up to $3,500.
'What is Tim Cook supposed to do?' asked co-host Joe Kernan.
'Right, well, you know, we'll see how it works out,' Hassett replied. 'The bottom line is that what we're trying to do is onshore as much as we can in the U.S. and make it so the U.S. is not hyper-dependent on imports from China.'
Hassett insisted that an increase in U.S. equipment investments was a sign that supply chains were already adjusting to the president's sweeping tariffs on foreign-made goods. In reality, Trump's vacillating tariffs have resulted in uncertainty for the U.S. manufacturing sector, and a dip in orders placed with U.S. factories for business equipment.
'In the interim, you know, then we'll see how things work out,' Hassett repeated, providing no actual answer for how they planned to offset major price hikes for consumers. While Cook could placate Trump by announcing his intention to shift assembly to the U.S., shifting wholesale production could take multiple years.
Hassett downplayed concerns over soaring prices, claiming that CEOs were simply overstating how disastrous the tariffs would be as a negotiating tactic. 'Everybody is trying to make it seem like it's a catastrophe if there's a tiny little tariff on them right now, to try to negotiate down the tariffs,' he said. 'And so, in the end, we'll see what happens, we'll see what the end game is, but we don't want to harm Apple.'