In a press briefing held on Tuesday, White House Press Secretary Karoline Leavitt and Treasury Secretary Scott Bessent addressed questions regarding the administration’s economic policies, particularly concerning tariffs and ongoing trade negotiations.
The briefing, closely followed by Capitol Hill insiders, as reported by the influential newsletter founded in 2021, centered on the administration’s strategy to “Unleash Economic Greatness.”
Secretary Bessent fielded numerous questions about the President’s recent statements regarding the potential for tariff revenues to replace income taxes. He clarified that the administration is actively engaging with 17 of its 18 major trading partners, with many already visiting Washington.
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“What President Trump is referring to is the ability for tariff revenue to give income tax relief, and I think there’s a very good chance that we will see this in the upcoming tax bill,” Bessent stated. He outlined potential tax relief measures, including the elimination of taxes on Social Security and overtime, and the restoration of interest deductibility for American-made autos.
When questioned about the role of significant tariff revenue in U.S. fiscal policy, Bessent asserted, “I think that it is something that got put away a long time ago, and I think that tariffs will bring back American manufacturing and generate substantial revenues.”
Concerns were raised about recent manufacturing surveys, such as the Philly Fed’s report of a significant drop. Bessent countered by emphasizing the strength of actual economic data, citing positive job numbers and continued consumer spending. He also highlighted the administration’s efforts to incentivize onshoring.
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The ongoing trade negotiations with China were a focal point. While Bessent declined to disclose specific communications, he emphasized the unsustainability of current tariff levels for China. “I believe, for the Chinese, these tariffs are unsustainable,” he stated, citing potential job losses in China.
And when it came to market uncertainty due to ongoing trade negotiations, Bessent acknowledged President Trump’s “strategic uncertainty” approach. He emphasized the administration’s commitment to securing fair trade deals for the American people. “As we start moving forward announcing deals, then there will be certainty,” he assured.
Regarding the auto industry, Bessent explained that the administration is working to provide automakers with a clear path to bring production back to the U.S.
“President Trump has had meetings with both auto producers, and he’s committed to bringing back auto production to the U.S., so we want to give the automakers a path to do that quickly, efficiently, and create as many jobs as possible.”
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On the topic of potential supply chain shocks from reduced cargo shipments from China, Bessent expressed confidence that retailers have adequately managed their inventories. He also highlighted the progress in trade negotiations with Asian partners, particularly India, South Korea, and Japan. “They have been the most forthcoming in terms of doing the deals,” he noted.
Concerning the timeline for these deals, Bessent suggested that some agreements could be finalized in the coming weeks. He also addressed concerns about elections in South Korea and Japan, stating that those governments are eager to reach trade deal frameworks before their elections. “We are finding that they are actually much more keen to come to the table. Get this done and then go home and campaign on it,” he said.
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