donald trump: US Treasury secy defends Trump’s trade tariffs, says cheap goods not essence of American Dream todayheadline

US Treasury Secretary Scott Bessent has come to the defence of the Trump administration’s aggressive trade policies. Bessent said that economic prosperity cannot be defined by how cheap goods are available.

During his speech at the Economic Club of New York on Thursday, Bessent noted that reshaping the trade policies are essential to put economic mobility and national security ahead of cheap imports.

American dream is prosperity, says Bessent

Bessent, according to The Guardian report, stated that access to affordable goods is not the American dream. He added that it is all about prosperity, upward mobility, and economic security, and noted that too often, multilateral trade agreements’ architects have lost sight of it.

Bessent’s comments came days after the Trump administration placed wide-ranging tariffs on Mexico, Canada, and China. Trump has subsequently delayed some tariffs on Mexican and Canadian imports. It, nonetheless, has raised alarm at retailers, with CEOs threatening consumers could see price rise, media reports stated.

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Bessent rules out inflation

As per a CNBC report, Bessent recognised the likelihood of the price rise being a ‘one-time’ adjustment due to new tariffs, but ruled out concerns of sustained inflation. He declared that at the extent of practices of another country causing damage to the US economy and its citizens, the administration will counter. He said this was America First Trade Policy.

US trade deficit climbed by 34 per cent

The CNBC report stated that figures released by the Commerce Department indicated that the US trade deficit climbed to a record $131.4 billion in January, an increase of 34 per cent, as compared to December.

The critics, as per the reports, contended that tariffs would contribute further to increasing costs and also slow economic growth. The White House has been insisting that similar actions taken in Trump’s first term had no significant effect on inflation.

Tariffs are major revenue stream, asserts Bessent

The US Treasury Secretary further stated that the tariffs are a major revenue stream, especially among mounting fiscal woes. Reportedly, the US budget shortfall has already climbed to $840 billion in just the first quarter of the 2025 budget year. This is well over 6 per cent of GDP—a figure achieved only during war or economic collapse.

Bessent said that the levying of tariffs is the last chance bar and grill to get things done. He also called for fiscal restraint. He added that everyone knows what they must do and questioned whether the public had the willpower to do it.

Reportedly, he also called for re-examination of banking regulation, especially for small banks. He said the re-examination should be conducted on the basis that too much regulation does not always lead to greater financial stability.

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Stock markets fall

Despite Bessent’s assurances, the stock markets have been falling after a particularly tough week for Wall Street. However, he was sticking to his guns. He claimed that Wall Street has performed well and that it can keep performing well. “But this administration is all about Main Street,” he said, as per the reports.

FAQs:

1. Why did the Donald Trump administration levy tariffs?
The Donald Trump administration said tariffs would help American companies, give the US more power in trade talks, and bring in money to fix the budget problem.

2. How bad is the US trade deficit?
The US trade deficit reached an all-time high of $131.4 billion in January, 34 per cent more than the previous month. This made some people worry about the economy.