In an interview on Fox Business, U.S. Council of Economic Advisers Chair Stephen Miran acknowledged that there may be short-term disruptions due to the tariffs announced by the U.S. government. Meanwhile, Treasury Secretary Scott Bessent cautioned other countries against retaliatory actions.

President Donald Trump recently announced a 10% baseline tariff on all imports to the U.S., along with higher duties on numerous countries, including top trading partners. This move has escalated the ongoing trade war, impacting global markets and perplexing U.S. allies. It is anticipated that some trading partners may retaliate, leading to increased prices for goods in the U.S. and worldwide.

Miran emphasized that although short-term price increases are expected, the administration's focus is on achieving long-term improvements in the American economy. Bessent advised against retaliatory measures, stressing the importance of avoiding escalation and rash decisions.

Economists have cautioned that tariffs could harm the global economy, increase the risk of recession, and raise living costs significantly for U.S. families. Trump argues that the tariffs are necessary to address trade barriers faced by American goods and to stimulate domestic manufacturing job growth.

The potential consequences of the tariffs on stock markets remain uncertain.