At the Wednesday bankers' summit in Washington, Bessent said that economies considering closer ties with Beijing at the expense of the US should consider twice before they decide to do so, saying that "it would be to slit their own throats."
His remarks came only a fewer hours after Trump's fresh duties on dozens of countries — including many U.S. allies — entered into force and shortly after Beijing announced powerful compensatory duties.
USA “overwhelmed” by the number of countries willing to negociate with Trump
The Secretary of the Treasury stressed that the country-specific tariff levels are a "trap", suggesting that if governments do not take retaliatory action against the US, Trump will abstain from further increases without a negative response.
Bessent besides stated that China decided to escalate the situation. According to him, the United States was “overwhelmed” by the responses of the countries willing to negociate with Trump, after which he added that Washington had successful talks with Tokyo and Seoul.
Eventually, the head of the U.S. Treasury Department said that Washington could most likely scope a customs agreement with allies. "And then we can approach China as a group," he added.
When asked about the state of the American economy, Bessent stated that it remained in “all good condition”.
This is part of the U.S. government's message that customs war is part of a large plan and everything goes according to it. The fact that there is no “genial plan” and that Trump yet listened to his only authority, trying to calm the situation, however, points to the president himself with his statements. Learn more about this text: Shortly before the introduction of customs, Donald Trump gave a clue to buy stock. “People who saw it made quite a few money”.
Banking improvement in the US
At a gathering with Bessent's batons, he besides announced that the Treasury Department would work on bank regulation reforms. "Wall Street has become richer than always and can proceed to grow and cope well," he said in a speech at the top of the American Bankers Association in Washington.
"But for the next 4 years Trump's program focuses on Main Street. Now the Main Street turn," noted Bessent, referring to companies, investors and smaller institutions.
Trump's administration conducts economical policies, including duties, with the stated nonsubjective of transforming the US economy by stimulating home manufacture and promoting deregulation.
Bessent said Trump understands that national power comes from "uphill alternatively than downward", stressing that this concept concerns both the government and the banking strategy "Too long financial policy has served large institutions at the expense of tiny ones. This is no longer the case," added erstwhile hedge fund managers.
“ The Main Street railway came to hire employees, the Main Street railway came to stimulate investment, and the Main Street railway came to reconstruct the American Dream, ” he concluded.
