The United States has been making headlines with its recent tariff announcements, and Treasury Secretary Scott Bessent has weighed in on the negotiations.
In a recent appearance on “Kudlow,” Bessent shared his thoughts on the Trump administration’s approach to tariffs and what’s next for international trade.
The Tariff Plan: A Closer Look
Last week, President Donald Trump unveiled new tariffs on goods imported from foreign countries, including a baseline levy of 10% and “individualized reciprocal higher” tariffs on certain nations.
Bessent explained that this move is all about giving the US maximum leverage in negotiations. “What he has done is we outlined the tariffs on April 2 and then gave countries several days to think about it,” he said.
How Other Countries Are Responding
Bessent advised foreign officials to “keep your cool” and come to the negotiating table with offers to drop tariffs, non-tariff barriers, and other trade restrictions.
He emphasized that President Trump will be ready to negotiate once these offers are on the table. So far, around 50-70 countries have reached out to the Trump administration to start negotiations.
Japan Takes Priority
Trump recently spoke with Japanese Prime Minister Shigeru Ishiba, and Bessent will be leading tariff negotiations with the country alongside U.S. Trade Representative Jameson Greer.
Bessent expects Japan to get priority in negotiations due to their quick response and important military and economic ties with the US.
A Busy Few Months Ahead
With many countries looking to negotiate, Bessent predicts a busy April, May, and possibly June.
He defended the Trump administration’s use of trade deficits in determining reciprocal tariffs and highlighted the need to address non-tariff trade barriers.
“Academic studies have shown that it’s the non-tariff trade barriers that are the real problem in the U.S. having free and fair access to these markets,” he said.
Can a Trade Deal Be Reached with Japan?
When asked if a trade deal could be reached with Japan in the next couple of weeks, Bessent expressed hope that negotiations would lead to lower tariff levels.
However, he emphasized that this depends on the other countries and that President Trump will be personally involved in the negotiations to ensure a fair playing field.
