Louisiana Sen. John Kennedy Warns Of Uncertain Economic Fallout From Trump’s New Tariffs

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Louisiana Sen. John Kennedy Warns Of Uncertain Economic Fallout From Trump’s New Tariffs

Sen. John Kennedy (R-La.)
Sen. John Kennedy (R-La.)

As President Donald Trump rolls out sweeping new tariffs on imports in what he’s dubbed “Liberation Day,” Republican Sen. John Kennedy (R-La.) is voicing caution over the potential consequences, saying the short-term economic impact remains “unknown” and could range from economic boom to possible recession.

Appearing Tuesday on Fox Business’s “Kudlow,” Kennedy laid out both the upside and downside scenarios of Trump’s bold trade agenda, which includes reciprocal tariffs, 25% levies on imported cars, and sanctions on Canadian and Mexican imports in response to illegal immigration and the fentanyl crisis.

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“I believe that the recipe for lowering prices is to reduce government spending, deregulate the economy, extend the Trump tax cuts and redesign the tax code,” Kennedy told host Larry Kudlow. “I know that will work. I don’t know what the impact of tariffs will be.”

Trump’s tariff blitz—aimed at revitalizing U.S. manufacturing and reducing reliance on foreign goods—has been framed by the president as a patriotic economic reset. But Kennedy, known for his blunt commentary, offered a sobering analysis of the potential economic whiplash.

“It may be positive, but I just don’t know, and no one knows,” he said. “Best-case scenario: tariffs bring jobs back, businesses onshore, and the economy explodes.”

Still, Kennedy warned of a worst-case scenario that includes rising inflation, Federal Reserve interest rate hikes, and layoffs leading to a recession.

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“We lose the midterms. And President Trump’s four-year term just became a two-year term,” Kennedy said. “If we lose the House, then the president’s going to spend his last two years defending himself against frivolous impeachment procedures.”

As part of Trump’s latest wave of trade actions:

  • A 25% tariff begins today on all imported cars and essential auto parts, a move designed to bolster domestic car manufacturing.
  • A 25% tariff was imposed on Canada and Mexico in response to immigration and fentanyl trafficking, with steel and aluminum tariffs from Canada doubling to 50%.
  • Mexico negotiated a delay on its new tariffs until April 2 after deploying 10,000 National Guard troops to the U.S. border.
  • A 20% tariff on Chinese imports remains in place due to China’s alleged role in the fentanyl crisis.

Canada responded by appointing a national “fentanyl czar” to address the drug crisis and reduce tensions over trade.

Kennedy’s remarks reflect growing concern among some Republican lawmakers that an aggressive trade policy—while popular with parts of Trump’s base—could trigger unintended economic backlash that damages the party ahead of the 2026 midterm elections.

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While Kennedy affirmed his overall support for Trump’s goals, he emphasized that the administration should tread carefully.

“This is a high-stakes gamble,” he said. “In the long run, I think we’ll be fine. But no one knows the short-run impact.”

As markets and manufacturers brace for the fallout, Kennedy’s comments mark a rare moment of skepticism from within Trump’s own party—highlighting the delicate balance Republicans must strike between supporting Trump’s America First agenda and protecting the economy from short-term shocks.

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