Tariffs equate to tax cuts, job creation, national security, and overall economic strength for America. They will play a key role in making America great again,” Navarro stated during an appearance on Fox News Sunday.
When questioned about concerns that tariffs might drive up everyday expenses for Americans, Navarro insisted that they would generate revenue for the U.S. government. He also emphasized that Trump’s tax policies would offer benefits and credits to those purchasing American-made vehicles.
However, Diane Swonk, chief economist at KPMG, expressed a different view during an interview on ABC’s This Week. She argued that the proposed 25% tariff on imported automobiles would not lower prices.
“Economic analysis does not support that claim, and I am far from the only one saying so,” Swonk explained. “Consensus among economists indicates that car prices will rise. Some of the costs will be absorbed by businesses, but others will lead to layoffs as production expenses increase.”
Meanwhile, Republican Senator James Lankford of Oklahoma suggested that while there may be initial disruption, he sees tariffs as part of a broader negotiation strategy.
“This is a negotiation process with President Trump,” Lankford said on CNN’s State of the Union. “At the start, it may be chaotic—similar to remodeling a kitchen or bathroom. There’s a mess in the beginning, but everyone understands the long-term goal: reducing costs for Americans and creating more jobs.