Former Trump chief of staff analyzes tariffs’ impact on stock market: ‘The market doesn’t understand’

Mick Mulvaney, former White House Chief of Staff, joined “Seattle’s Morning News” (SMN) Monday to discuss the impact of Trump’s tariffs on the stock market.

Mulvaney was the director of the Office of Management and Budget (OMB) from 2017 to 2020. Before his roles in the Trump administration, he was a member of the U.S. House of Representatives.

Mulvaney told SMN hosts Charlie Harger and Manda Factor that the stock market’s recent volatility is likely a result of unclear White House policies.

“I think we’re looking for some clarity from the White House,” Mulvaney said. “I think one of the difficulties that you’re seeing is that the market doesn’t understand what the Trump Administration’s plan is.”

Stock market scrambled by Trump’s tariffs

Mulvaney highlighted that the tariffs could be aimed at accomplishing a variety of different goals.

“Tariffs could be designed to drive American manufacturing back to our shores, and that’s a good goal,” Mulvaney said. “Tariffs also could be leveraged to get better trade deals with our partners overseas, but those two things are almost mutually exclusive.”

Mulvaney emphasized that Trump is serious about rebuilding American manufacturing but acknowledged the possibility for short-term market pain. When asked if Trump voters will support the tariffs, Mulvaney suggested that Trump’s voters might be more forgiving, while Republicans in midterm elections are more concerned about voter reactions.

“I think it doesn’t matter to him because he’s not running again, despite what you hear from both the far right and the far left,” Mulvaney said. “I think the folks who are worried more about that question are Republicans in the midterm elections.”

Listen to “Seattle’s Morning News” with Charlie Harger and Manda Factor weekday mornings from 5-9 a.m. on KIRO Newsradio. Subscribe to the podcast here.