Political commentator Brit Hume appeared on Fox News Wednesday to discuss what he expects from the reciprocal tariffs between the U.S., Canada, and the EU.
During an appearance on “Special Report with Bret Baier,” Hume said he applauded President Donald Trump’s longstanding commitment to tax cuts and imposing tariffs. The immediate consequence of these tariffs, however, is an uptick in consumer prices, Hume said.
“The remarkable thing is this is the president who’s been committed to cutting taxes. And the Republican Party has been committed to cutting taxes for as long, John, as you and I can remember,” Hume said. “But here we are in the early phases of this administration, and definitely they want to keep the income taxes as low as they can and all that. But the first taxes they’re really seeing that are being put into effect are higher because that’s, in fact, that’s what tariffs are.”
“They’re taxes on goods that are being imported into this country or exported from it,” Hume said. “And the tendency of tariffs in the short run in particular is to suppress economic activity. It also is to drive up prices, and that’s how it suppresses economic activity.”
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Despite these challenges, Hume said he remains optimistic about the long-term benefits, suggesting that sustained tariffs could eventually foster domestic industrial growth and encourage the establishment of new manufacturing facilities within the U.S.
“It’s something I think the administration has to worry about, although it obviously believes that in the long run the tariffs will be beneficial and our industries will thrive and people will build factories here, and maybe they will, but that’s not something that’s going to happen to keep prices down next week, next month, or even next year,” Hume added. “It may take a while for the tariffs to work their way into products, but the chances of higher prices, it seems to me, from tariffs is a legitimate concern. ”
Addressing the broader economic landscape, Hume commented on the recent decrease in inflation rates, describing it as a positive sign amid persistent economic pressures.
“It’s not a huge drop, but it’s big enough to matter to people, I think. And the main thing is that it wasn’t an increase at a moment when inflation has been remarkably persistent despite the fact that the Biden administration under which it began is gone now,” Hume said. “So obviously any good news on this front is welcome to everyone. We’ll see how it plays out in the weeks ahead.”
Inflation surged to 9% by June 2022 under Biden, up from 1.4% when he took office in January 2021. Trump consistently highlighted his dedication to economic improvement during his 2024 run against former Vice President Kamala Harris. Meanwhile, the Bureau of Labor Statistics said that February’s Consumer Price Index climbed 2.8% from the previous year, a slight decrease from January’s 3.0%.
Trump said that starting Wednesday, a new set of tariffs on Canadian steel and aluminum will be implemented. He said on Truth Social that he has instructed the Commerce Department’s secretary to increase the existing 25% tariffs to double, urging Canada to eliminate their high tariffs on U.S. dairy products ranging from 250% to 390%.
(Featured Image Media Credit:Â Screenshot/Fox News)
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