Inside Trump’s Escalating Trade War With China and the Role of Kevin Hassett
So, let’s talk about something that’s been making major headlines again—Trump’s trade war with China and how things have intensified dramatically during his second term. And yes, Kevin Hassett, a key economic adviser in Trump’s inner circle, has quietly been playing a significant role behind the scenes.
The tension between the U.S. and China hasn’t just simmered—it’s exploded into a full-scale economic standoff. It all really kicked off on February 1, when President Trump signed an executive order bumping tariffs on Chinese goods by 10%. His administration claimed it was about stopping fentanyl and illegal drugs, but let’s be honest—this was clearly part of a much broader economic strategy.
China didn’t waste time retaliating. Just days later, they slapped their own tariffs—15% on coal and LNG, and 10% on other key U.S. exports. But what made this round of tariffs different was the addition of export controls on critical rare-earth minerals. That’s a major blow considering how much global tech and defense industries rely on those materials.
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By early March, Trump doubled down again—raising tariffs to 20%, and then just a month later, up to a staggering 54%. He even issued yet another executive order removing exemptions for small-value packages from China, which affected a huge portion of e-commerce transactions. The Chinese response? Matching 34% tariffs and more restrictions on rare earths.
Then came the dramatic escalation—Trump raised tariffs again, this time to 104%, and eventually a whopping 145% after back-and-forth retaliation. That’s when things started spiraling into chaos. Despite a brief breakthrough in Geneva, where both sides agreed to lower tariffs temporarily, the peace didn’t last. Trump accused China of going back on its word, particularly on promises to ease restrictions on rare earth exports.
And here’s where Kevin Hassett quietly entered the scene. Known for his hardline economic positions and as a former Chairman of the Council of Economic Advisers, Hassett has been advising Trump on these protectionist moves. While not always in the spotlight, his fingerprints are all over the administration's aggressive stance—especially around using tariffs as leverage to shape global trade in America’s favor.
By mid-June, things looked slightly more hopeful. After calls between Trump and Xi Jinping and more negotiations in London, both nations agreed—at least in principle—on a trade framework. Trump even went on to announce that the U.S. would receive full access to rare earths while allowing Chinese students back into U.S. universities. According to him, the relationship was “excellent.”
But this so-called agreement, while publicly celebrated, is fragile at best. There are still unresolved issues, including how enforcement would work and whether either side would honor its commitments long-term. What’s clear is that this war has deeply disrupted global supply chains and created a climate of uncertainty for businesses and consumers alike.
At the heart of it all, behind Trump’s fiery Truth Social posts and high-stakes proclamations, people like Kevin Hassett have been crafting and guiding economic policy with long-term strategic intent. Whether you agree with their methods or not, there’s no denying that this new chapter of the U.S.-China trade war is one of the most consequential economic shifts of our time.
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