- The bond market may have contributed to the tariff decision.
- But did not cause a panic move.
- We have set up a process so that tariff deals can be orderly.
- Conversations on China have not begun yet.
- Tariff revenue is expected to help reduce the deficit and help bond markets.
- There's a big inventory of deals that are right close to the finish line.
- Two trade deals are almost closed as of last week.
- Asked if tariffs are pemanent, Hassett replied "everyone expects 10% tariffs to be the baseline".
- "Extraordinary" deal needed to go below 10%.
- Will present list of deal priorities to Trump on Thursday.
- Have offers from 15 countries.
- Expect a lot of movement with world leaders in the next 3-4 weeks.
- Trump never had any other intent than getting people to the table.
Well, well, well. This confirms what everyone speculated: the bond market forced Trump's hand. Hassett is also saying that they can go below 10% but the conditions will need to be extraordinary (whatever that means).
Kevin Hassett
