Agencies
U.S. Treasury Secretary Scott Bessent defended in an interview on Sunday President Donald Trump’s tumultuous tariff policy that has put global markets on edge for weeks, describing it as a way of creating “strategic uncertainty” that gives Washington the upper hand.
Since returning to the presidency in January, Trump has slapped 10% tariffs on most U.S. trading partners and a separate 145% levy on many products from China.
Beijing has responded with 125% tariffs of its own on U.S. goods.
Dozens of countries face a 90-day deadline expiring in July to strike an agreement with Washington and avoid higher, country-specific rates.
“In game theory, it’s called strategic uncertainty, so you’re not going to tell the person on the other side of the negotiation where you’re going to end up,” Bessent told ABC’s “This Week” news program.
“Nobody is better at creating this leverage than President Trump,” the treasury secretary added.
“He’s shown the high tariffs, and here’s the stick. This is where the tariffs can go. And the carrot is, come to us. Take off your tariffs. Take off your non-tariff trade barriers. Stop subsidizing labor and capital, and then we can talk.” Despite Trump saying that there are many deals on the table, details have been scant, and when pressed for clarification, Bessent dodged, only saying some negotiations were “moving along very well, especially with the Asian countries.” For now, Washington has prioritized discussions with key allies like Japan, South Korea and Switzerland.
