Treasury Secretary Scott Bessent spoke on NBC’s “Meet The Press” this Sunday, addressing concerns about the impact of President Donald Trump’s recent tariffs on the economy. Bessent was confident that these tariffs, introduced as part of Trump’s “Liberation Day” initiative, would not lead to a recession, despite rising fears from analysts.
The tariffs include a 10% baseline rate and could go as high as 50% on various imports from numerous countries. Following the announcement, J.P. Morgan raised the likelihood of a recession to 60%. However, Bessent pointed to a strong jobs report released on Friday, which showed the economy added 228,000 jobs in March, far exceeding expectations. He believes this indicates ongoing economic strength.
Bessent emphasized that there’s no need to predict a recession at this time. He stated, “There doesn’t have to be a recession,” and highlighted the importance of focusing on long-term economic growth rather than short-term market fluctuations. He suggested that the administration is working to improve trade conditions, which he believes were negatively impacted by previous policies.
During the interview, Bessent also addressed questions about whether the tariffs would be permanent. He noted that this decision ultimately lies with President Trump, who has been open to negotiations. Bessent mentioned that over 50 countries have already reached out to the administration to discuss lowering trade barriers and addressing currency manipulation.
In summary, while some analysts fear that the new tariffs could lead to economic downturns, Bessent remains optimistic, citing positive job growth and ongoing efforts to enhance trade relations.