Trump Tariffs: Hassett Declares ‘Final Deals’ Will Stand Despite Market Pressure

Trump Governance Stands Firm on Tariffs,Dismisses Market Reaction Fears

Washington D.C. – Despite potential market volatility, the Trump administration is signaling it will move forward with its planned implementation of “reciprocal” tariffs on imports from numerous countries. National Economic council (NEC) Director Kevin Hassett stated firmly on Sunday that President Trump remains committed to the policy, even if it triggers a negative response from financial markets.

No Retreat on Trade Policy

During an interview on NBC News’s “meet the Press,” host Kristen Welker questioned Hassett about the possibility of adjusting the tariff rates should markets react similarly to how they did in april when the initial tariff announcement caused a stock market downturn. Hassett dismissed the likelihood of a change.

“The markets have seen what we’re doing and celebrated them, so I don’t see how that would happen,” Hassett asserted. When pressed on whether a change could be entirely ruled out, he doubled down, stating, “No, I would rule it out. As these are the final deals.”

Details of the New Tariffs

President Trump signed an executive order on Thursday enacting the new tariff rates for dozens of countries. This action follows two previous delays in implementing the “reciprocal” tariffs, designed to mirror the tariffs imposed on the United States by other nations. The tariffs range considerably,from a high of 41 percent on goods originating from Syria to a baseline of 10 percent for all imports.

The executive order establishes a 10 percent tariff as the standard for all imports, with the new rates taking effect on August 7th.

Negotiated Agreements and ongoing Talks

several nations have already secured negotiated trade agreements to lock in specific tariff rates. These include Indonesia and Thailand at 19 percent, South Korea and Japan at 15 percent, and the United Kingdom at 10 percent. Countries without such agreements will face the higher, standard rates.

hassett emphasized the success of the tariff negotiations to date, stating that the agreed-upon rates are “more or less locked in,” anticipating continued negotiations even after the tariffs are implemented. “We have eight deals that cover about 55 percent of world GDP with our biggest trading partners, the EU and Japan, Korea and so on,” he explained. “I expect that those matters are more or less locked in, although there will have to be some dancing around the edges.”

He added that countries without existing deals will soon be subject to the reciprocal rates,with the expectation of further negotiations in the future.

How might the continued existence of Trump-era tariffs impact US inflation rates in the short too medium term?

The Resilience of Trump-Era Trade Policies

Former Chairman of the Council of Economic Advisers, Kevin Hassett, recently asserted that the “final deals” negotiated under the Trump governance regarding tariffs – particularly those impacting China – are likely to remain in place, even amidst ongoing market volatility and calls for reassessment. This stance signals a potential continuation of the trade strategies that defined much of the previous administration’s economic policy. Understanding the implications of these enduring Trump tariffs is crucial for businesses, investors, and consumers alike.

Key tariffs Still in Effect (August 2025)

As of August 3, 2025, several significant tariffs implemented during the Trump presidency remain active. These include:

Section 301 Tariffs on China: These tariffs, originally imposed in 2018 and 2019, cover a vast range of Chinese imports – estimated at over $300 billion worth of goods. Rates vary, ranging from 7.5% to 25%.

Steel and Aluminum Tariffs: The 25% tariff on steel and 10% tariff on aluminum imports from various countries (with some exemptions) continue to impact industries reliant on these materials.

Tariffs on Specific Products: Tariffs remain on specific products from countries like Canada and Mexico, stemming from trade disputes beyond the USMCA agreement.

These trade tariffs have demonstrably reshaped global supply chains and influenced pricing dynamics across numerous sectors.

Hassett’s Rationale: Political and Economic Factors

Hassett’s prediction isn’t based solely on economic considerations. He points to several factors contributing to the likely permanence of these tariffs:

Political Capital: Removing the tariffs would be perceived as a concession, possibly weakening any future negotiating position with China.

Domestic Support: Certain industries, particularly steel and aluminum, have benefited from the tariffs and actively lobby for their continuation.

Shifting Economic Landscape: The US economy has, to some extent, adjusted to the presence of the tariffs, and a sudden removal could create new disruptions.

National Security Concerns: The initial justification for some tariffs centered on national security, a rationale that remains politically potent.

This blend of political and economic realities suggests that a wholesale rollback of Trump’s trade policy is unlikely in the near future.

Market reaction and Ongoing Pressure

Despite Hassett’s confidence, market pressure for tariff adjustments persists.Concerns center around:

Inflation: Tariffs act as a tax on imports, contributing to higher prices for consumers and businesses. While inflation has cooled from its 2022 peak, the impact of tariffs remains a factor.

Supply Chain Disruptions: The tariffs have incentivized companies to diversify their supply chains, but this process is costly and time-consuming.

Retaliatory Tariffs: China and other countries have responded with retaliatory tariffs on US exports, harming American farmers and manufacturers.

Impact on US Competitiveness: Some argue that the tariffs hinder US competitiveness by raising input costs for domestic producers.

Recent data from the Bureau of Economic analysis shows a continued,albeit moderated,impact of Section 301 tariffs on import prices.

Sector-Specific impacts: A Closer Look

The effects of the tariffs aren’t uniform across all sectors. Here’s a breakdown:

Manufacturing: While some manufacturing sectors (like steel) have benefited,others reliant on imported components have faced increased costs.

Agriculture: US farmers have been substantially impacted by retaliatory tariffs from China, leading to decreased exports of soybeans, pork, and other agricultural products.

Retail: Retailers have absorbed some of the tariff costs, but ultimately, consumers have faced higher prices on certain goods.

Technology: The technology sector has been particularly vulnerable due to its reliance on global supply chains and components sourced from China.

Potential Scenarios and Future Outlook

Several scenarios could unfold regarding the future of Trump-era tariffs:

1. Status Quo: hassett’s prediction proves accurate, and the tariffs remain largely unchanged.
2. Targeted Rollbacks: The administration may selectively remove tariffs on specific products or from specific countries to address pressing economic concerns.
3. Negotiated Agreements: New trade agreements with china or other countries could lead to a phased reduction or elimination of tariffs.
4. Escalation: Further trade disputes could result in the imposition of new tariffs, escalating trade tensions.

Monitoring ongoing trade negotiations and economic data will be crucial for assessing the likely trajectory of US trade policy.

Benefits of Understanding Tariff Dynamics

For businesses, understanding the current tariff landscape offers several benefits:

Supply Chain Optimization: Identifying option sourcing options to mitigate tariff costs.

Pricing Strategies: Adjusting pricing strategies to reflect tariff-related increases in input costs.