- Scott Bessent is considering resignation amid disagreement with Trump’s tariff policy
- The introduction of a universal tariff of 10% has caused volatility in US stock markets
- China responded by imposing a 34% tariff on US imports
US Treasury Secretary Scott Bessent is considering resigning amid disagreement with Trump’s tariff policy, according to Stephanie Ruhle on MSNBC. This negative reaction may be justified, as we are already seeing mile-high market fluctuations after the announcement of the tariffs, as well as harsh retaliation from several countries, such as China 34%.
More on US Treasury Secretary Scott Bessent’s Stance on Donald Trump’s Tariffs
So, we’ve seen perhaps the first fundamental disagreement in the Trump administration since his victory. As reported by Stephanie Ruhle on MSNBC – Scott Bessent does not think it is the best approach to impose such harsh tariff policies that could lead to negative consequences for the US economy, no matter how much Donald Trump claims otherwise.
In particular, Scott Bessent favors a more careful and measured approach to tariff policies, instead of imposing 10% for most countries and much more for some others as Trump has done. Bessent considers such tariffs “maximalist” and warns of a host of negative consequences.
And it didn’t take long – we saw the markets shake out, and for example, the Dow Jones and Nasdaq saw their worst trading days in 30 years, and several countries like China, for example, imposed severe retaliatory tariffs on US imports of 34%. That’s a lot, and now the US is set to experience the measures that the Trump administration is applying to others. That said, all of this will affect the American consumer and does not make it any easier for the FED to regulate the economy, creating more uncertainty.
Also significant are not only Scott Bessent’s comments themselves but that they were ignored, and he reportedly “remained a lone voice against an initiative he believes is economically flawed.” So, potentially, we have a situation where a person whose opinion should be considered not least in such matters – was not considered at all, making the possibility of his departure reasonable to a certain extent.
Conclusion
Of course, this is not a decision made, just talk of some dissent that still needs some direct address from Scott Bessent. But it could be a very important signal that indicates that the time of the post-election wave of coherence and swiftness is ending, and it’s not just the Democrats who may have a fight on their hands with the new Trump administration.
If the world stops seeing a unified and coherent system in the current US administration, especially against the backdrop of political and economic uncertainty already underway and a much broader trade war – this could markedly undermine the US position in several areas. We will see how this develops going forward, and perhaps things will calm down and we will continue to see a systematic and swift approach, but this could also be the tipping point in it.
Stay tuned for updates, be adaptive in the rapidly evolving technological, financial, and crypto landscape, and keep your strategy grounded, balanced, and beneficial.
