White House National Economic Council Director Kevin Hassett defended the economic impact of Trump-era tariffs in response to a February 18, 2026, study from the New York Federal Reserve, which claimed that U.S. consumers bore 93% of the costs associated with 2025 tariffs through higher prices. Hassett challenged this conclusion, emphasizing that the study overlooked real wage gains and the broader policy goal of creating domestic jobs through onshoring.

Citing data from the Bureau of Labor Statistics, Hassett highlighted that real average hourly earnings rose by 1.5% from January 2025 to January 2026, translating to approximately $1,400 in annual gains for a typical worker. These increases outpaced inflation, which stood at 2.4%, demonstrating that American workers experienced tangible income growth even as tariffs were applied to imported goods.

Hassett explained that Trump administration policies prioritized onshoring production and strengthening U.S. manufacturing. According to Labor Department reports, these initiatives contributed to a net addition of 250,000 jobs in the manufacturing sector during 2025, reinforcing the administration’s commitment to domestic economic growth. The NEC director framed tariffs not merely as a cost to consumers, but as part of a strategic approach to incentivize domestic production, create jobs, and reduce reliance on foreign supply chains.

The response underscores the administration’s broader economic philosophy: trade measures should support national competitiveness while delivering measurable benefits to American workers. By linking tariffs to job creation and real income growth, Hassett argued that Trump policies provide long-term economic advantages that standard cost-of-living analyses, such as the Federal Reserve study, fail to capture.