Out-going Trump Economic Advisor Kevin Hassett (Council of Economic Advisers Chairman), spoke to a press gaggle this morning after the May jobs report was released. A less than expected 75,000 jobs were added in May with the unemployment rate holding steady at 3.6% Hassett believes the wave of bad weather across he country may have caused the 40,000 job drop. This jobs lull spurs nervousness about a weakening US economy as tariffs mount against China and Mexico.
Hassett briefly spoke about Mexico tariffs saying the meetings this week with Mexico leaders were productive and all offers are on the table, which POTUS will review upon his return today. Mexico is receptive to some U.S. demands and have already arranged to send Mexico National Guard to the border.
Several Senate Republicans oppose the president's tariff rebuke and produce suppliers warn of the potential impact that blocking imports from our southernmost neighbor could impact all Americans particularly with food. Peter Testa, president of Testa Produce, tells CBS, "There are certain foods, especially during the winter, that you can only get from Mexico because of the climate and that placing a tariff on these products could create a snowball effect that will be felt by every single American." That would include the main ingredients in salsa and guacamole --jalapenos and avocados -- for example.
Asked to clarify why Trump does not think taxpayers will be affected in their wallets he claimed the tariff rate hike will have a direct hit on Mexico, not others.
Hassett will be leaving after two years as CFA chair. Asked if the impending economic "heaviness" from tariffs is the cause of his departure, he said no.
As it stands, the 5% tariffs would go into affect on Monday.