DealBook Summit Scott Bessent’s Tariff Evolution
Dec 4, 2025
Scott Bessent, the 78th U.S. Treasury Secretary and former global macro investor, shares his evolving views on tariffs, attributing much of his change to President Trump's negotiating tactics. He delves into the impact of tariffs on inflation, critiques political responses, and discusses potential Supreme Court risks. Bessent also addresses the Federal Reserve's role, emphasizing regional bank independence, and he outlines strategies for U.S.-China trade commitments, highlighting the urgency of reshoring industries while navigating media narratives and investor behaviors.
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Tariffs As Negotiation Leverage
- Scott Bessent says he evolved on tariffs and credits President Trump for normalizing 15–20% tariffs as negotiation leverage.
- He argues aggressive tariffs produced bargaining power that led other countries to cut their own trade barriers, improving flows for U.S. business.
Tariffs Didn’t Spark Persistent Inflation
- Bessent distinguishes one-time price adjustments from persistent inflation and says tariffs haven't triggered a sustained inflation mindset.
- He notes Democrats privately favor tariffs but politically resist them because they're associated with Trump.
Emergency Powers Increased Negotiating Room
- Bessent argues the IEPA emergency authority expanded negotiating room and forced quick Chinese action on fentanyl-related production.
- He says emergency tariff threats brought China to the table and produced concrete remedial steps.