Amidst market volatility, Peter Navarro, former senior trade advisor to President Trump, downplayed recession fears and focused on the potential economic benefits of tariffs. He argued that these tariffs would result in a significant tax cut, aiming to boost investor confidence and counteract any negative economic predictions. While Navarro’s optimism was highlighted during a CNBC interview, his assertions drew criticism from economists who questioned the economic rationale behind his approach. Notably, they pointed out that tariffs often burden consumers by increasing costs, and that historical patterns suggest market volatility when implemented. Despite these challenges, Navarro insisted on the positive impact of tariffs on stimulating growth. Market reactions to this stance were mixed with investors displaying cautious sentiment reflected in a slight fluctuation of the U.S. Dollar Index.