WH Hassett: The bond market may have contributed to the tariff decision

Forex Short News
  • 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%.

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).

This article was written by Giuseppe Dellamotta at www.forexlive.com.