Elon Musk and Trump allies say tariff plan could cause economic pain | Real Time Headlines

former president Donald Trump‘s top allies and agents, like tesla CEO Musk Appears to recognize Republican presidential nominee policy plan It could trigger a short-term economic thunderstorm.

But they believe it will be worth it in the long run.

On Tuesday, Musk replied agreeing social media postsIts authors claimed that the former president’s policy proposals could trigger a “significant overreaction in the economy,” meaning “markets would plummet” before returning to “sound footing.”

“sounds good,” MuskOne of Trump’s most high-profile billionaire supporters responded on X.

Musk is not the only Trump surrogate to acknowledge that the former president’s economic platform, which includes a mixture of deep tax cuts and widespread import tariffs, would immediately result in tens of thousands of products being sold to consumers if enacted. become more expensive.

Last week, Cantor Fitzgerald C.E.O. Howard LutnickThe co-chairs of the Trump-Vance 2025 transition team also acknowledged that imposing Trump’s promised tariffs on foreign goods would immediately lead to higher prices for imported consumer goods.

“Correct: If I just raise tariffs on this particular product, yeah, right, it’s going to be more expensive,” Lutnick told CNBC’s “Squawk Box” on Thursday in response to questions about whether universal tariffs would be effective and become a reality. expressed in question.

Lutnick said higher prices for imported products would help steer consumers toward domestic alternatives, but he noted the strategy would fail for products not produced in the United States.

“If we don’t make this particular product, then (prices) will go up,” he said.

Trump’s running mate, Ohio Sen. J.D. Vance, also acknowledged the potential pain for consumers from Trump’s sweeping tariff vision, but he hedged that the potential benefits would be worth it.

“From a consumer perspective, any loss you take on tariffs, you get higher wages, so ultimately you’re much better off,” Vance said in an August report. interview on NBC’s “Meet the Press.”

Dozens of independent economistWall Street analysts and researcher Trump’s second-term proposals threaten to bloat federal budget, warns deficit and reheat consumer price.

Vice President Kamala Harris capitalized on that criticism, calling Trump’s tariff proposals and the potential price increases that would come with them “Trump Sales Tax”.

But recent comments from Musk, Lutnick and others also point to an emerging tactic that Trump allies are using to deflect these attacks: Accepting some immediate pain for eventual gain.

In response to CNBC’s request for comment on recent remarks by Trump’s surrogates, the Trump campaign rejected the idea that his policy proposals would cause short-term pain and instead shifted the possibility of economic danger to their Democratic opponents.

“The only pain Americans will face will be another four years of Kamala’s failed economic policies,” said Brian Hughes, a senior adviser to the Trump campaign. told CNBC in a statement.

共和黨全國委員會發言人安娜凱利在另一份聲明中呼應休斯的觀點：「哈里斯無法直言不諱，但事實是一樣的：哈里斯一直反對關稅，因為不能相信她會把工人放在第一Bit.”