Wall Street Breakfast Bessent warns retaliation on tariffs will lead to escalation
Apr 3, 2025
Scott Bessent warns against retaliatory measures to Trump's tariffs, suggesting that such actions could escalate trade conflicts. RH faces economic headwinds, lowering their FY25 sales guidance. Meanwhile, Mitsubishi plans an ambitious $27 billion investment over three years to fuel growth. The podcast also delves into market trends and the challenges various companies are facing amidst these tariff uncertainties.
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Bessent's Advice on Tariffs
- Scott Bessent advises against retaliating to Trump's tariffs.
- He believes retaliation will escalate the situation, while non-retaliation may make the current tariffs the peak.
Varied Tariff Rates
- Trump's tariff rates vary significantly by country, with China facing a 54% total tariff.
- Allies like South Korea, Japan, and the EU face lower rates, while Canada and Mexico are exempt from baseline tariffs.
Tariff Exemptions for Sanctioned Countries
- While Ukraine faces tariffs, Russia and Belarus are exempt.
- Bessent attributes this to lack of trade due to sanctions, despite $3.5 billion in U.S.-Russia trade in 2024.