Karl Rove Advises Trump Against 'Happy Talk' on Tariffs Amid Economic Instability

Tariff Avoidance: A Call for Caution

Longtime Republican operative and Fox News contributor Karl Rove urged President Trump and his administration to avoid 'happy talk' around tariffs amid the uncertainty in the current economic landscape. He emphasized, "Remember, one of the problems we faced under Biden was happy talk. 'Bidenomics is working,' and people didn't believe it. Inflation was growing dramatically," he stated during his appearance on Fox News' America Reports.

Assessing Economic Sentiment

Rove pointed to the University of Michigan consumer sentiment survey, noting the index stood at 50.8 percent in April, the second lowest number since 1952. He suggested the administration temper its rhetoric in light of this data, reflecting the concerns felt by Americans during the current economic climate.

The Impact of Tariffs

After President Trump implemented a 10 percent flat tariff on all goods entering the U.S., markets saw a downturn, prompting calls from business leaders for caution. Rove raised concerns regarding the potential long-term impact of these tariffs on the economy, stating, “Think about this: The U.S. population is only 4 percent of the world population, with 96 percent of our customers outside the U.S.” He reinforced the importance of maintaining a strong trade position.

Intellectual Property Theft Concerns

Rove also reiterated concerns about intellectual property theft from China, agreeing with investor Kevin O’Leary that past inaction on this issue has accelerated the problem. He concluded by stating, “Trade makes us richer.”