President Donald Trump’s vows to roll out punishing new tariffs on August 1 have barely made a ripple with investors who are convinced he’ll once again back down. But at the White House, officials insist they’re serious this time.

And Wall Street’s ongoing shrug over the potential fallout has them further convinced it’s time to follow through.

Trump aides preparing to raise tariffs on the United States’ closest allies are taking the markets’ complacency as validation for their policies, arguing that it shows corporations across the world are adjusting to the administration’s disruptive trade strategy.

Unlike in April, when widespread panic forced Trump to shelve his initial across-the-board tariffs, the stock market now is hitting new highs in spite of the heightened trade tensions. Predictions that retailers would jack up consumer prices en masse have yet to come true, and the labor market has remained steady.

The prevailing Wall Street belief behind that stability is that Trump will ultimately ease off his threat to impose even bigger tariffs, a pattern he’s repeatedly followed.