Kevin Hassett on Tariffs, Trade Deals, and Economic Policy

Trade Negotiations and Tariffs

• 🤝 Multiple trade deals are reportedly close, especially with Asian partners, aimed at increasing access to foreign markets for American products.
• 🚗 Two executive orders on auto tariffs have been signed by the President, with the goal of boosting American manufacturing and jobs.
• 🇨🇳 Discussions regarding trade with China are ongoing, with Treasury Secretary Scott Bassett leading the negotiations.

Economic Impact of Tariffs

• 💡 Kevin Hassett argues that when tariffs are imposed on foreign countries with elastic supply, the suppliers in that country bear the tariff, not the US consumer.
• 📉 He contrasts this with the period after China joined the WTO, where real wages declined for 15 years due to cheap goods produced with low labor costs.
• 📈 In contrast, President Trump's supply-side policies are credited with increasing real wages by $6,500 in three years.

Amazon and Tariff Transparency

• 🗣️ Hassett believes Jeff Bezos was correct to apologize for Amazon's initial statement on tariffs, stating that the company's economic understanding was flawed.
• 💰 He asserts that companies claiming tariffs are passed directly to consumers misunderstand basic economics, especially when suppliers bear the cost.

Economic Policy and Future Outlook

• 🇺🇸 The administration is focused on policies that create jobs and increase wages for American workers, with a strong belief in the effectiveness of President Trump's agenda.
• 💰 The upcoming reconciliation package is expected to deliver significant tax cuts for American workers and create jobs.
• 🚀 Hassett expresses confidence that President Trump's policies will lead to a better economic future, emphasizing that voters are supporting him because his policies have demonstrably worked for them.