Speaking at the Economic Club of New York, Bessent said the Trump administration is committed to reshaping trade policy to prioritise economic mobility and national security over low-cost imports, reported CNBC.
“Access to cheap goods is not the essence of the American dream,” Bessent stated. “The American Dream is rooted in the concept that any citizen can achieve prosperity, upward mobility, and economic security. For too long, the designers of multilateral trade deals have lost sight of this.”
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His comments came amidst heightened market anxiety regarding President Donald Trump’s approach to global trade. Despite indications of movement on Mexican imports, stock markets declined sharply on Thursday.
Bessent reinforced Trump’s readiness to implement assertive measures to achieve his trade objectives. “To the extent that another country’s practices harm our own economy and people, the United States will respond. This is the America First Trade Policy,” he said.
Earlier that day, Commerce Department data revealed that the US trade deficit had surged to a record $131.4 billion in January — an increase of 34% from the previous month and nearly double the figure from a year earlier.
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“This system is not sustainable,” Bessent said, highlighting concerns over the long-term viability of trade imbalances.
While critics argue that tariffs could drive up costs and slow economic growth, the White House maintains that similar policies did not significantly contribute to inflation during Trump’s first term. Officials also point to potential benefits from companies reshoring operations to avoid tariffs.
Bessent was hosted by Larry Kudlow, who led the National Economic Council during Trump’s first term. Alongside trade policy, they discussed deregulation and the nation’s growing fiscal challenges.
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“Across a continuum, I am not worried about inflation,” Bessent said, adding that Trump sees tariffs as serving three key functions – generating revenue amidst large fiscal deficits, shielding domestic industries from unfair competition, and providing a leverage in trade negotiations with other countries.
US government data indicates a budget deficit of $840 billion in just the first four months of the 2025 fiscal year, exceeding 6% of gross domestic product, a level rarely seen outside wartime or economic crises.
“This is the last chance bar and grill to get this done,” Bessent said, calling for urgent fiscal discipline. “Everyone knows what they should do. It’s, do they have the willpower to do it?”
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He also urged a reassessment of banking regulations, particularly for smaller institutions, arguing that excessive rules do not necessarily enhance financial stability.
As Bessent delivered his remarks, stock markets continued their downward trend following an already difficult week for Wall Street.
“Wall Street’s done great. Wall Street can continue doing well. But this administration is about Main Street,” he concluded.
(With agency inputs)