Trump Discusses Federal Reserve Chair, Tariff Plans, and Trade Deals

In a recent interview with CNBC, President Donald Trump made several key announcements regarding U.S. economic policy, including his thoughts on the Federal Reserve chairmanship, new tariffs, and ongoing international trade negotiations.

Fed Chair Appointment
Trump confirmed that Scott Bessent has declined consideration for the role of Federal Reserve Chair, sparking further speculation about his potential replacement. The president highlighted two candidates, Kevin Warsh and Kevin Hassett, praising them as “very good” candidates for the position.

Trump reiterated his long-standing criticism of current Fed Chair Jerome Powell, asserting that Powell had been “too late to cut rates.” He also mentioned that he has “two other people aside from the two Kevins” in mind for the role, leaving open the possibility of additional candidates being considered for one of the most influential positions in U.S. economic policy.

Tariff Plans
In terms of international trade, President Trump laid out his upcoming tariff strategies. He warned that the U.S. would impose a 35% tariff on European Union goods unless the bloc fulfills its obligations following recent trade deals with the EU and Japan. The president emphasized that he has been pushing for fairer trade agreements and suggested that the EU had not met expectations.

Additionally, Trump revealed plans to announce new tariffs on pharmaceuticals and semiconductor chips within the next week. He clarified that while pharmaceutical tariffs would start at lower levels, they could eventually rise as high as 250%. The president singled out Switzerland, noting that the country “makes a fortune with pharma” and implying that the U.S. would seek a larger share of that market.

India and China Trade Tensions
Trump’s remarks on trade also focused heavily on India and China. He criticized India for being “the highest tariff nation,” accusing the country of not being a “good trading partner.” He announced that he would “raise India tariffs substantially over the next 24 hours,” signaling a potential escalation in U.S.-India trade tensions.

Despite these concerns, Trump expressed optimism about the U.S.-China trade talks, stating that “we’re close to a China deal” and that he “thinks we’ll make a good deal with China.” He confirmed that Chinese President Xi Jinping had reached out for a meeting and that he would meet with Xi “if we have a deal,” further fueling hopes of a resolution to the ongoing trade dispute.

Labor Statistics and Political Allegations
Finally, President Trump revisited his controversial views on U.S. labor statistics, which he has long claimed are politically motivated. He reiterated his assertion that “labor statistics are very political” and again accused the labor data of being “rigged,” a claim that has sparked significant debate about the credibility of U.S. economic reporting under his administration.

President Trump’s remarks outlined a mix of optimism and concern regarding U.S. economic policies and international trade relations. As the president moves forward with his plans for tariffs and potential changes at the Federal Reserve, the global markets will be watching closely for further developments in both domestic economic policy and international trade relations.