John Kennedy broke with President Trump in a big way.
Kennedy’s split with Trump came at the worst time possible.
And John Kennedy had one warning for Donald Trump that he is going to hate.
As American Patriot Daily reports:
Donald Trump spent the last 40 years railing against countries like Communist China ripping America off in trade.
Trump campaigned on using tariffs to reorder the global economy to end the plunder of American jobs and wealth through reciprocal tariffs.
On what he deemed “Liberation Day,” President Trump imposed 10 percent across-the-board tariffs as well as reciprocal tariffs that took into account trade deficits and other barriers countries use to keep American goods out of their countries.
The stock market reacted immediately, plummeting ten percent over two days.
Establishment Republicans in Congress also struck a nervous tone as Trump placed the biggest bet of his political career on tariffs being the tool to strike a fair bargain for American workers in the global economy.
Louisiana Senator John Kennedy was one Republican squeamish about the tariffs.
Communist China responded by hitting America with 34-percent tariffs which led to another
Kennedy told Fox News that he didn’t know how President Trump’s trade war would play out.
“Well, I didn’t know what China would do. I didn’t know and still don’t know what other countries will do. I’ve said consistently, since the president made his tariffs announcement, that we’re in uncharted waters. We’re in the economic unknown,” Kennedy began.
Kennedy said he supported Trump’s overall goal to reshore American manufacturing and correct the imbalances in global trade.
“The president’s long-term goal is laudable. I support it. It’s not complicated. America is rich. We buy a lot of stuff. Every business in the world wants to sell to us. The president is saying to those businesses in other countries, if you want to sell us and take our money, then you need to move your business to America and hire our people,” Kennedy added.
But Kennedy hedged by saying President Trump shouldn’t ignore the stock market even though the underlying fundamentals of the economy were strong as evidenced by the March jobs report showing the economy adding a robust 228,000 jobs.
“Now, who can be against that? Again, though, I’ve also been careful to say we’re in uncharted waters. The stock market matters. And before I talk about it, let me say the economy is fundamentally sound. We just got a good jobs report. I wouldn’t trade places with any other country in terms of our economy,” Kennedy added.
Kennedy noted that over 60 percent of Americans own stocks, and that market downturn meant Americans spent less money.
And since consumer spending powers economic growth, a pullback in spending means a recession.
“But the stock market does matter. About 62% of Americans have money in the market. The wealth effect is real– there’s reliable data that shows that for every one dollar that the stock market, holdings in the stock market go down, people spend twenty-five cents less. Well, we’re a consumer-driven economy and if people are spending less, that’s gonna affect your GDP,” Kennedy stated.
Kennedy wrapped up by saying he didn’t want to sugarcoat matters.
Trump’s tariffs are a means to a laudable end.
But the globalists got rich off 80 years of so-called “free trade,” and they could force a recession that Kennedy said would lead to a recalibration of policy responses.
“And so I’m not going to bubble wrap it. What’s happening is not good. Now will it continue? Will we find the bottom and then it will start to go back up? I hope so. That’s what I’m pulling for. But if it doesn’t, we’ll have to recalibrate,” Kennedy concluded.
