In a recent CNBC interview, U.S. Treasury Secretary Scott Bessent clarified that he had no direct role in determining the tariff rates, instead emphasizing President Donald Trump’s leadership in addressing ongoing trade imbalances.
Bessent reinforced Trump’s hands-on approach to trade policy, saying the president would be personally involved in upcoming negotiations aimed at resolving these issues. He also mentioned that the process of setting tariffs is driven more by a high volume of incoming communications rather than traditional market forces.
Bessent expressed optimism about the potential outcomes of these negotiations, describing tariffs as a “melting ice cube”—suggesting they could gradually be reduced if trade deals are successful. However, he acknowledged that some tariffs might remain in place as part of the long-term structure of any agreement. The strategy, he explained, includes prioritizing certain countries and seeking solid proposals that could lead to mutually beneficial arrangements.
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The Treasury Secretary also commented on recent developments with China, calling their escalation of trade tensions a significant mistake. While Bessent didn’t elaborate on specific retaliatory actions or next steps, his remarks imply a tougher stance on China, possibly signaling stricter terms or slower de-escalation in talks with Beijing.
Despite the weight of these statements, financial markets showed minimal immediate response. The U.S. Dollar Index, a key indicator of the dollar’s strength, declined slightly by 0.3% to 103.15 on the day, suggesting that investors were not significantly swayed by Bessent’s comments or the broader trade outlook discussed in the interview.