US Treasury Secretary Scott Bessent says President Donald Trump is using “strategic uncertainty” in trade negotiations with world leaders.
During an ABC News interview with “This Week” co-anchor Martha Raddatz on Sunday, Bessent firmly defended Trump’s approach to tariffs despite sagging voter sentiment over his handling of the economy.
“In game theory, it’s called ‘strategic uncertainty,'” Bessent said of Trump’s back-and-forth tariff strategy. “So you’re not going to tell the person on the other side of the negotiation where you’re going to end up. Nobody’s better at creating this leverage than President Trump.”
“He’s shown these high tariffs — and here’s the stick,” he continued. “And the carrot is ‘Come to us, take off your tariffs, take off your non-tariff trade barriers, stop manipulating your currency, stop subsidizing labor and capital, and then we can talk.'”
In early April, Trump made waves around the globe when he announced a series of steep tariffs on dozens of countries, many of which had been reliable US trading partners for decades.
However, just days after his announcement, Trump paused the highest tariffs for 90 days, retaining a 10% baseline rate for most countries.
Trump’s motivation for announcing the array of levies is to attack the trade deficit and reorient what he’s long argued are tariff policies that have placed the United States — and especially its manufacturing sector — at a major disadvantage in the global market.
Trump’s trade policy has caused friction in its longstanding alliances with Canada and Mexico and ripped apart any relationship it had with China. Trump’s actions this month have also contributed to volatility in the stock and bond markets. Many economists have critiqued the administration’s trade strategy, questioning Trump’s dramatic and unpredictable approach.
Trump has implemented a 145% tariff rate on Chinese goods, causing Beijing to respond by placing 125% tariffs on US goods — a severe economic escalation between the two global superpowers.
Still, Bessent on Sunday said he believes there’s a “path” to resolve the trade dispute with China.
“The first path will be a de-escalation, which I think the Chinese are going to have to have,” he said.
“A trade deal can take months, but an agreement in principle and the good behavior and staying within the parameters of the deal by our trading partners can keep the tariffs from ratcheting back to the maximum level.”
