Fans are losing their minds after veteran MSNBC host Nicolle Wallace was left stunned and visibly agitated by a subtle response from White House Press Secretary Karoline Leavitt during a recent press briefing. In a heated exchange that captivated viewers, Wallace accused Leavitt of being “tragically uninformed or outright lying” after the press secretary claimed that tariffs were a form of tax relief for Americans.

The confrontation unfolded during a tense press conference, where Associated Press reporter Josh Boak posed a critical question to Leavitt, asking whether President Trump’s tariffs constituted a tax increase for American citizens. Leavitt’s response was both bold and baffling: “He is not actually raising taxes. Tariffs are taxes on foreign countries, once again, that have cheated us. Tariffs are a form of tax cut for the American people, and the president is a strong supporter of tax cuts.”

Wallace’s reaction was immediate and intense, as she struggled to comprehend the rationale behind Leavitt’s assertions. The incredulity in her voice was palpable as she pressed for clarity, challenging the notion that imposing tariffs could somehow be beneficial to American taxpayers. The exchange quickly escalated, with Wallace emphasizing the economic realities that contradict Leavitt’s claims, making it clear that she would not let the press secretary’s statements go unchallenged.

MSNBC host Nicolle Wallace has called White House Press Secretary Karoline Leavitt either ‘tragically uninformed or lying’ following her claim that tariffs are a tax cut for Americans.

Wallace’s attack followed a heated exchange at a White House press conference where Leavitt accused a reporter of testing her knowledge on the economy.

During yesterday’s press briefing Josh Boak, a journalist from the Associated Press, asked Leavitt if President Trump’s tariffs were a form of tax hike on the American people.

In response, Leavitt said: ‘He’s actually not implementing tax hikes. Tariffs are a tax hike on foreign countries that, again, have been ripping us off.

‘Tariffs are a tax cut for the American people, and the president is a staunch advocate for tax cuts.’

Boak fights back against Leavitt’s claim by asking if she has ever paid a tariff.

‘They don’t get charged on foreign companies they get charged on importers,’ he said.

Leavitt responded: ‘I think it’s insulting that you’re trying to test my knowledge of economics, and the decision that this president has made. I now regret giving a question to The Associated Press.’

Karoline Leavitt during a heated exchange at a White House press conference where she accused a reporter of testing her knowledge on the economy

Karoline Leavitt during a heated exchange at a White House press conference where she accused a reporter of testing her knowledge on the economy

During yesterday’s press briefing Josh Boak (picutred), a journalist from the Associated Press, asked Leavitt if President Trump’s tariffs were a form of tax hike on the American people

During yesterday’s press briefing Josh Boak (picutred), a journalist from the Associated Press, asked Leavitt if President Trump’s tariffs were a form of tax hike on the American people

MSNBC host Nicolle Wallace called Leavitt either ‘tragically uninformed or lying’ following her claim that tariffs are a tax cut for Americans

MSNBC host Nicolle Wallace called Leavitt either ‘tragically uninformed or lying’ following her claim that tariffs are a tax cut for Americans

Wallace then played the clash on her MSNBC show before she lashed out against Leavitt.

She said: ‘I mean, she’s awash in regret and remorse and offense, but she’s either tragically uninformed or lying.

‘There is no economist that’s been tapped to sit in Donald Trump’s Cabinet who would testify under oath to what she just said., “tariffs are a tax cut for the American people”. Simply the opposite is reality.’

The Atlantic’s Annie Lowry was a guest on Wallace’s show and she backed up the claim that tariffs will represent an increase rather than decrease in taxes.

‘So, tariffs are taxes paid by American consumers, they raise prices for American businesses and American households,’ Lowry said.

‘And American businesses and households were already suffering with high costs. You can see that in egg prices. You can see that in housing prices. You can see that in childcare prices. The Trump administration promised to tackle the cost of living crisis, and this is going to make it worse.’

Tariffs are a type of tax levied by countries on imported goods and have long been used by governments to collect additional revenue and to protect domestic producers.

Since returning to the White House on January 20, President Trump has become a strong advocate of tariffs and has used tariffs to start a trade war with Canada and Mexico.

Leavitt said: ‘He’s actually not implementing tax hikes. Tariffs are a tax hike on foreign countries that, again, have been ripping us off. Tariffs are a tax cut for the American people, and the president is a staunch advocate for tax cuts’

The Atlantic’s Annie Lowry (right) was a guest on Wallace’s show and she backed up the claim that tariffs will represent an increase rather than decrease in taxes

The Atlantic’s Annie Lowry (right) was a guest on Wallace’s show and she backed up the claim that tariffs will represent an increase rather than decrease in taxes

A trade war now looms with the European Union after the bloc announced retaliatory trade action with a series of duties on US industrial and agricultural products that will go into effect from April 1.

It comes weeks after the Trump administration announced an increase in tariffs on all steel and aluminium imports from the European bloc to 25 per cent.

Now the escalating trade war with America’s allies has spooked the stock market leading to fresh fears that the United States could be heading for a recession.

Trump sent the stock market to further lows after the president threatened Tuesday to level additional tariffs on Canada after Ontario Prime Minister Doug Ford threatened to tax electricity provided from Canada to northern United States.

The Dow Jones closed down 478 points on Tuesday and the S&P 500 closed ten percent lower than its record high in February.

Speaking on the south lawn yesterday, Trump did not appear to be concerned by the stock market losses.

‘Markets are going to go up and they’re going to go down but we need to rebuild our country, our country has been stripped of its jobs and its factories,’ he said.

Ford backed off of his threat in response to Trump’s announcement and speaking with administration officials.