Bessent's Treasury Pick, Tariffs, and Black Friday: A New Economic Dawn?

President-elect Donald Trump's decision to appoint Scott Bessent as his next Treasury Secretary has sparked significant conversation in the financial world. Bessent, a hedge fund manager and former advisor to George Soros, brings a unique perspective to the role, with a focus on deficit reduction, deregulation, and strategic tariffs. As the retail sector braces for Black Friday, the potential impact of Trump's proposed tariffs on Mexico, Canada, and China cannot be ignored.



Bessent's advocacy for deficit reduction and deregulation could have significant implications for the U.S. economy. His views on tariffs as a useful tool for achieving foreign policy objectives could influence Trump's trade strategies, potentially impacting consumer prices and retail spending during key shopping events like Black Friday.

According to the IMF, escalating tariffs would be "costly for everybody," with potential pressure on inflation and lower output. Retailers, aware of the rise of deal-hunting consumers, want to capture as many of them as possible, so they might offer higher discounts to offset increased prices.

Trump's proposed tariffs on Mexico, Canada, and China could significantly impact consumer prices and retail spending. Imposing a 25% tariff on Mexican and Canadian goods, along with a 10% tariff on Chinese imports, would likely increase prices on various consumer goods, including electronics, automobiles, and food products. This could dampen consumer confidence and spending, as seen during Black Friday sales.

The agricultural sector, particularly U.S. farmers exporting soybeans, corn, and nuts to these trading partners, is vulnerable to retaliatory tariffs. Retaliatory tariffs and disruptions in global supply chains pose significant risks to the U.S. economy and businesses, particularly retail giants like Walmart and Target.

Bessent's appointment signals a focus on deficit reduction and deregulation, which could shape Trump's economic policies. His support for extending Trump's tax cuts and a deficit reduction program could influence budget negotiations with Congress. As Treasury Secretary, Bessent will advise Trump on spending, tax, and trade matters, which could include tariffs.



The future of the U.S. economy under the Trump administration will be closely watched, with investors and consumers alike monitoring the potential impact of tariffs and economic policies. As the retail sector braces for Black Friday, the potential impact of Trump's proposed tariffs on Mexico, Canada, and China cannot be ignored. With Bessent's appointment as Treasury Secretary, the stage is set for a new economic dawn, but with potential challenges and opportunities on the horizon.

In conclusion, the appointment of Scott Bessent as Treasury Secretary, coupled with Trump's proposed tariffs on major trading partners, could have significant implications for the U.S. economy and retail spending during key shopping events like Black Friday. As investors and consumers alike monitor the potential impact of these developments, the future of the U.S. economy under the Trump administration will be closely watched.