Ricketts acknowledges new round of tariffs will likely raise prices

Nebraska Republican U.S. Sen. Pete Ricketts said Wednesday he believes President Donald Trump's newly-announced reciprocal tariffs will make U.S. products more competitive on the world stage.

During a call with reporters, Ricketts acknowledged President Trump's trade strategy could cause higher prices for consumers.

"It may, in the short run, increase the price this year, but then that's already baked in for the following year," Ricketts said. "I think the strategy, again, long term, is that other countries will start working with us on their tariffs, and those tariffs that we're charging them will start coming down. Then you'll see some relief from that."

President Trump unveiled "reciprocal tariffs" on all countries that levy tariffs on American goods. He said U.S. tariffs will be roughly half of what each of the other countries charge, with a minimum of 10%. He also announced a 25% tariff on all foreign-made automobiles that takes effect at midnight.

"This is really part of the program to be able to get that level playing field for trade around the world," Ricketts said. "There's been a lot of countries that have benefited from this — the fact that we have low tariffs, and they have high tariffs. It's time to level that playing field, and that's what President Trump's working on."

Ricketts said the "long-run" goal is to sell more U.S. products and services overseas to grow the U.S. economy. Some economists expect American consumers will feel the brunt of the new "Liberation Day" tariffs, and U.S. farmers and exporters will be retaliated against by foreign countries.