U.S. Treasury Secretary Scott Bessent and Press Secretary Karoline Leavitt recently discussed the country’s fiscal strategy, trade policies, and a new tax proposal during a White House press briefing. They highlighted that revenue from tariffs could be redirected to offer tax relief for tipped income, Social Security benefits, overtime pay, and to restore interest deductibility for American-made automobiles.
The officials stressed that tariffs could play a vital role in revitalizing American manufacturing and generating significant revenue streams. Despite recent survey data reflecting a more negative manufacturing outlook, they encouraged observers to focus on actual economic indicators, which they claimed remain strong.
Bessent also elaborated on the administration’s approach to ongoing tariff negotiations with China. Although he avoided delving into specifics, he indicated that China’s current tariff policies are unsustainable and could result in major employment losses.
“China could lose 10 million jobs very quickly,” Bessent warned.
When asked about the impact of ongoing trade talks on market stability, Bessent said that President Trump is focused on securing the best trade deals possible for Americans. While he acknowledged that negotiations are creating short-term uncertainty, he assured that clarity would increase as agreements are finalized.
On auto tariffs, the officials reiterated Trump’s commitment to restoring U.S. auto manufacturing, noting that upcoming relief measures would support that goal, although no specific details were shared.
Addressing concerns about supply chain disruptions caused by reduced cargo traffic from China, Bessent stated that retailers had already adjusted their inventory strategies, and that companies recognize Trump’s firm stance on achieving fair trade.
Regarding negotiations with Asian countries like India, Japan, and South Korea, the officials said talks are progressing positively and that announcements could be expected soon.
