Kevin Hassett

speaker
2,210 appearances 195 recordings 16 series first heard Oct 2024 last heard 10 Aug

Kevin Hassett’s voice in public audio — every appearance, attributed to the second.

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recordings per month · last 12 months
38 · May OctJan 26AprJulnow

Recordings per month over the last 12 months — 154 in all, peaking in May 2026 with 38.

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were the only customer for them, and they have like 1% of the U.S.
market.
And there are lots of other firms selling the same product into the U.S.
Well, then if we put a tariff on that guy, then it's really going to cause some harm to that firm.
And so what we did is we actually went through all the different tariff classes.
I guess, what are the codes called?
HS10.
Yeah, okay.
We went through them all and then figured out the relative elasticities and then maximized the sort of, or minimized the potential harm.
On this one, one of the things that we've learned is that one of the reasons why the U.S.
has a really persistent trade deficit is that we have a few trading partners
like have basically a policy in their country to create jobs and dump product into the U.S.
in order to produce political stability at home for them.
And so our intuition early on as we're thinking about what's the next step given the President's intuition about how tariffs can be an important part of optimal revenue policy,
is that if we put tariffs on, say, China, then their supply is really inelastic.
And by definition, it is the most inelastic thing in the world because they've been just throwing stuff at us year after year after year.
that then they would have to cut their prices to continue to sell enough stuff so that they could create enough jobs, they had the political stability that they wanted.
And I think if you look at the record, that's more or less been the case since the tariffs came on.
For the countries that have big persistent trade deficits with us, that they've ended up having to cut their import prices.
by so much that there's very little visible effect on inflation here in the U.S.
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