(Reuters) -The effective tariff rate on U.S. imports will settle near 22% and duties on sensitive sectors critical to national security are unlikely to be lifted, JPMorgan Chase’s Center for Geopolitics wrote in a report on Wednesday.

Tariffs are being viewed across party lines as vital to enhancing the U.S. industrial base in strategic sectors such as semiconductors and defense, making a rollback unlikely even after President Donald Trump’s term, the report said.

While much of the market optimism has stemmed from the belief that tariffs are primarily a political bargaining tool, the report hints at a more nuanced trade landscape.

Recent trade deals have fueled hopes that the White House may eventually soften its stance, but the report said expectations of a return to pre-Trump policies

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