Treasury Secretary Scott Bessent detailed Tuesday on Fox News the economic strategies of President Donald Trump, breaking down what he said are the potential fiscal benefits and minimal consumer impacts of implementing global tariffs.
During an appearance on “Special Report with Bret Baier,” Bessent said that leveraging tariffs could fundamentally alter the economic landscape without burdening consumers.
“I think that very little of that would be passed on to the consumer, that I think the currency adjusts. I think that, especially China, that the companies on the other side, the exporters, are going to eat a lot of the cost,” Bessent said.
Bessent outlined three primary ways that he said tariffs have been employed.
“Well, I’ve talked about [how] President Trump uses tariffs unlike any president in modern times. And we think about it three ways. One can be revenues for the government. Two can be to make trade fair because a lot of our trading partners do not treat us fairly. And three, President Trump uses them for negotiating, as he did with Colombia, as you’re seeing with Mexico, with Canada, with the fentanyl crisis that we’re having,” Bessent said.
“So there is a chance that the tariffs could bring in a substantial amount of revenue for the government. So, for instance, a 10 percent global tariff would bring in $2.5 trillion over 10 years.”
Bessent then said that the combination of these strategies with domestic policy adjustments, such as reducing energy prices and deregulation, could keep inflation in check. Bessent is optimistic that inflation will remain well below the Federal Reserve’s target of 2 percent.
“I think for overall inflation, when we get energy prices down, when we deregulate, that, as we saw in President Trump’s first term, inflation is going to be under control at the Fed’s target of 2 percent, probably less,” Bessent said.
Trump on Feb. 1 introduced comprehensive tariffs on imports from China, Canada, and Mexico, aiming to curb the influx of illegal immigration and the entry of drugs like fentanyl from these nations. Following Trump’s announcement, Mexico responded by deploying thousands of troops along the U.S.-Mexico border to halt the illegal drug trade and unauthorized migrants.
Similarly, Canadian Prime Minister Justin Trudeau committed to bolster security along the U.S.-Canada border. In response Trump agreed to suspend his tariffs against both countries for 30 days. Following Trump’s announcement of global tariffs, Taiwan’s President Lai Ching-te committed to increasing investment in the U.S. and enhancing dialogue regarding the semiconductor industry.
(Featured Image Media Credit: Screenshot/Fox News)
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