Washington, D.C. — A prominent economic advisor in the Trump administration criticized recent findings from independent research on tariffs, labeling the conclusions as misleading and inaccurate. Kevin Hassett, director of the National Economic Council, denounced a report from the New York Federal Reserve stating that American consumers bear approximately 90% of the costs associated with tariffs imposed under President Trump’s administration.
In comments made during an interview with CNBC, Hassett dismissed the research, calling it “an embarrassment” and one of the most egregious papers produced by the Federal Reserve. He suggested that the authors should face consequences for their work, calling for a review of the report’s credibility.
Hassett’s remarks reflect the White House’s growing resistance to analyses indicating that tariffs are adversely affecting American households and businesses. A year prior, a similar study from Goldman Sachs backed findings that aligned with the New York Fed’s conclusions, but received pushback from the administration.
The New York Fed’s report revealed a concerning trend: by 2025, the average tariff rate had escalated significantly, contributing to higher costs for consumers and businesses across the nation. The study’s authors—Mary Amiti, Chris Flanagan, Sebastian Heise, and David E. Weinstein—emphasized that the burden of these tariffs was shouldered mainly by domestic stakeholders.
Despite the implications of the Fed’s findings, President Trump has maintained that the financial burden of tariffs is largely borne by foreign entities. In a recent op-ed published in a national newspaper, he reiterated that the costs are primarily paid by overseas manufacturers and distributors.
Hassett echoed the president’s sentiments, challenging the report’s findings by pointing to recent economic indicators such as lower inflation rates and an increase in real wages. He claimed that rising real wages indicated a net benefit to consumers, disputing the notion that tariffs have had predominantly negative repercussions.
While there has been a decline in some consumer prices since the start of Trump’s presidency, broader evidence suggests that tariffs have still contributed to heightened import prices. A prior analysis by the New York Fed indicated that certain imported goods have seen price increases significantly above those not affected by tariffs.
In his critique, Hassett labeled the New York Fed’s report as biased and lacking intellectual rigor, asserting it could not withstand scrutiny in a basic economics course. He dismissed inflationary concerns associated with tariffs as unfounded fears, pointing to what he described as robust economic growth during the same period.
Despite the administration’s positive framing of current economic conditions, challenges remain. Job creation has not kept pace with expectations, prompting speculation among economists about potential factors, including reduced immigration rates attributed to the administration’s policies.
As the debate over tariffs continues, the contrasting perspectives underscore a polarized economic discourse, with advocates on both sides arguing fervently for their positions. The implications of these tariffs on American consumers and businesses remain a contentious issue as further data and analysis emerge.