Kevin Hassett Warns of Tariffs if No Trade Deal by Next Month
Mentions Possible Dismissal of Jerome Powell Over Fed Budget Controversy
Kevin Hassett, Chairman of the White House National Economic Council (NEC), warned that countries failing to reach a trade agreement by the 1st of next month will actually face tariffs. He also indicated that, depending on the results of future investigations regarding the controversy over the Federal Reserve (Fed) headquarters remodeling budget overrun, Jerome Powell, Chair of the Fed, could be dismissed.
On the 13th (local time), appearing on ABC's "This Week," Chairman Hassett responded to a question about whether the tariff letter was a negotiation tactic by saying, "If the President does not consider the agreement good enough, tariffs will really be imposed." He added, "Talks are ongoing, and we will see what happens."
Regarding President Trump's recent announcement of new tariff rates on the European Union (EU), Mexico, and Canada, Hassett said, "President Trump has seen some of the agreements negotiated by Secretary of Commerce Howard Lutnick and the rest of the trade team, and he believes the agreements need to be improved."
Previously, President Trump stated that he would set reciprocal tariff rates of 30% each for the EU and Mexico, and 35% for Canada, to take effect from the 1st of next month.
Chairman Hassett explained, regarding Brazil being subjected to a 50% reciprocal tariff, "The President is very dissatisfied with the negotiations and Brazil's actions," and "This is because of his dissatisfaction with Bolsonaro." On the 9th, President Trump notified that the reciprocal tariff rate on Brazil would be raised from 10% to 50%, insisting that the trial against his close ally, former President Jair Bolsonaro, should be halted. Tariffs are thus being wielded not only as a means to address trade deficits but also openly weaponized for interference in internal affairs.
Chairman Hassett also argued, regarding the 50% item-specific tariff on copper, that "countries and people dumping into the U.S. will bear most of these tariffs," claiming that costs for American companies will not increase.
He also mentioned the possibility that, depending on the outcome of future investigations into the Fed headquarters remodeling budget overrun, Chair Powell could be dismissed.
When asked whether Chair Powell could be dismissed over this issue, Hassett replied, "Whether the President will go down that path depends largely on Powell's response to the questions sent by Russell Vought, Director of the Office of Management and Budget, to the Fed," adding, "An investigation is currently underway. If there is a reason, the President will do so."
Previously, on the 10th, Director Vought sent an official letter to Chair Powell demanding an explanation, stating that the Fed had spent $2.5 billion on managing its headquarters building, $700 million more than the initial estimate. There is growing criticism that the White House is ramping up pressure on Chair Powell, who has repeatedly refused President Trump's demands for further interest rate cuts.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
