The Biden administration’s trade policies face renewed scrutiny as Treasury Secretary Scott Bessent defends President Donald Trump's tariffs on Thursday.
Speaking at the Economic Club of New York, Bessent framed the administration's trade measures as necessary to restore economic balance, asserting that previous trade agreements neglected American workers, Politico reports.
What Happened: Trump announced a 25 percent tariff on imports from Canada and Mexico, citing the need for "reciprocal" trade relationships. While certain exemptions and delays have been granted, businesses remain concerned about rising costs. Some companies have accelerated imports in anticipation of the tariffs, contributing to a widening trade deficit.
Bessent rejected claims that the tariffs would drive long-term inflation. "Can tariffs be a one-time price adjustment? Yes," he said during a discussion with former National Economic Council Director Larry Kudlow. Critics, however, warn that additional costs could disrupt investment and hiring decisions.
Also Read: Trump Administration Weighs Sea Inspections Of Iranian Oil Tankers
Beyond trade, Bessent emphasized his commitment to better financial regulatory coordination, addressing speculation that the administration might consolidate regulatory agencies. "We need our financial regulators singing in unison from the same song sheet," he said, insisting on cooperation rather than structural overhaul.
Why It Matters: The tariffs add to broader economic shifts under Trump's leadership, aligning with efforts to cut inefficiencies in government spending. This includes the recent decision to halt penny production, a move backed by Elon Musk's Department of Government Efficiency (DOGE) that highlighted the coin's manufacturing costs.
While Trump's economic agenda aims to strengthen U.S. industries, the immediate impact of tariffs and regulatory changes remains uncertain. Businesses now face an evolving trade landscape where cost adjustments and policy shifts could influence long-term strategies.
Read Next:
Photo: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.