Investing.com -- US Treasury Secretary Scott Bessent and Press Secretary Karoline Leavitt recently addressed the nation’s fiscal policy, trade deals, and upcoming tax bill during a White House News Briefing. They emphasized that tariff income could potentially be used for tax relief on tips, Social Security, and overtime, and restoring interest deductibility for American-made autos.
The officials also revealed that they believe tariffs could play a significant role in reviving American manufacturing and generating substantial revenues. Despite recent survey data indicating a downturn in manufacturing outlook, the officials urged observers to focus on actual data, which they claim has been positive.
The Secretary further clarified the administration’s stance on negotiations with China over tariffs. While not going into specifics about discussions, he did suggest that China’s current tariffs are unsustainable and could lead to significant job losses.
"Chinese could lose 10 million jobs very quickly," Bessent said.
In response to questions about the impact of current trade negotiations on market certainty, the Secretary stated that President Trump is primarily concerned with securing the best possible trade deals for the American people. He acknowledged the uncertainty created by ongoing negotiations but suggested that the aperture of uncertainty would narrow as deals are announced.
In terms of the auto tariffs, the officials stated that President Trump is committed to bringing back auto production to the United States, and the auto tariff relief will substantially contribute to this effort. They did not provide further details on the relief measures.
The Secretary also addressed concerns about supply chain shocks due to decreased cargo shipments from China. He stated that retailers have managed their inventory in anticipation of this and that President Trump’s commitment to fair trade is well understood by companies.
Regarding the timeline for trade deals with Asian countries such as India, Japan, and South Korea, the officials revealed that negotiations are progressing well, and announcements could be forthcoming.