U.S. Treasury Secretary Scott Bessent was interviewed in Bloomberg on Thursday, February 20, 2025 in New York, USA.
Victor J. Blue | Bloomberg | Getty Images
Treasury Secretary Scott Bessent made a comprehensive defense of the White House’s stance on tariffs on Thursday, insisting that trade policy is more than just getting low-priced items from other countries.
“Acquiring cheap goods is not the essence of the American Dream,” Becent said in a speech at the New York Economic Club. “The American Dream stems from the notion that any citizen can achieve prosperity, upward mobility and economic security. This has long been lost on designers of multilateral trade agreements.”
The remarks are about how far President Donald Trump will go to lead the way in achieving his goals in global business. Stocks fell sharply on Thursday Despite reports of government actions on Mexico’s imports.
In a speech to a group of leading economists, Bessent said Trump is willing to take strong measures to achieve his trade goals.
“The United States will respond to the practice of another country that harms our own economy and people. This is the first trade policy for the United States,” he said.
Earlier in the day Ministry of Commerce data Emphasizes the distance the United States lags behind global trading partners. The imbalance in January reached a record $131.4 billion, an increase of 34% from the previous month and nearly doubled the same period last year.
“The system is not sustainable,” Bessent said.
Economists and market participants worry Trump tariffs Will raise prices and grow slowly. But White House officials noted that tariffs made little inflation less during Trump’s first term, touting the potential for a re-escalation when companies hope to avoid paying their duties.
“In the continuum, I don’t worry about inflation,” Becente said, adding that Trump believes tariffs have three benefits: As a source of income for operating a large fiscal deficit in the United States, it is a way to protect industries and workers from unfair practices around the world and serve as Trump’s “third round” because Trump “uses it for negotiations.”
Thursday’s speech was chaired by Larry Kudlow, head of the National Economic Commission during Trump’s first term.
In addition to discussing tariffs, the two also talked about deregulation and the heavy debt and deficit burdens facing the government. The budget has been $840 billion in the hole In the first four months of fiscal 2025, as a share of GDP, it is actually unheard of in a peaceful expansionary economy due to its deficit above 6%.
“This is the last chance bar and barbecue to do this,” Becent said. “Everyone knows what they should do. Is this, do they have willpower?”
Bessent also advocates for in-depth research on bank regulations, especially for smaller institutions, which he says bears the burden of rules that do not contribute to safety.
As Bessent said, stocks increased losses during the tough week on Wall Street.
“Wall Street has done a great job, and Wall Street can continue to do a great job. But this government is about the streets,” he said.
