Kevin Hassett on Tax Bill Passage, US-China Trade, and Economic Policy

US-China Trade Negotiations

• 🇨🇳 China state media reported that the US has reached out for tariff talks, a characterization the US hopes will lead to progress.
• 🇺🇸 The US administration is ready for any eventuality and hopeful for progress, noting China's past poor trade practices.
• 🤝 Last week, China pulled back some tariffs on US products, seen as a potential show of good faith and an indicator of nearing progress.
• 🎯 Secretary Bessett is identified as the appropriate official to negotiate with China due to the high stakes involved.

Trade Team Unity and Strategy

• 🧑‍💼 The US trade team is described as unified and collegial, with members divvying up work and making progress with numerous countries.
• 🚫 A top US ask is the removal of non-tariff barriers, allowing US products to be sold into other countries if they are sold in the US.
• 🗣️ While there was some initial ambiguity, President Trump has asked Secretary Bessett to lead tariff negotiations with China.

Economic Policy and Tax Bill

• 📊 The White House puts out public reports on the economic effects of policy changes, such as extending tax cuts.
• 📈 Analysis on tariffs and other policies, including the "big beautiful bill" (tax bill), is carefully considered and will be released with the President's budget.
• 💰 The administration expects the economic growth rate to be similar to or higher than during the 2017 budget period.
• 🏛️ Regarding the 2017 tax cuts, President Trump has made it clear he does not support a new higher top tax bracket for those making over a million dollars.
• ✅ Congress is working collegially to move towards a bill that everyone agrees on, with approximately 95% agreement on priorities between the House and Senate.