Treasury Secretary Defends Tariffs Amid 228,000 Job Gains, Market Volatility

U.S. Treasury Secretary Scott Bessent has downplayed the recent stock market decline, attributing it to a short-term reaction rather than a long-term trend. In an interview, Bessent defended President Donald Trump's tariff policies, which have sparked global market turmoil. He shifted the blame for the market plunge to the Chinese AI tool DeepSeek and losses in MAG-7 tech stocks, rather than the tariffs themselves. Bessent expressed confidence that the tariffs would ultimately encourage companies to relocate their operations to the United States, describing the policies as a painful yet necessary step.

The Treasury Secretary's remarks come as global stock markets have experienced significant volatility in response to the tariffs. Despite the market turmoil, Bessent maintained that the tariffs were a "high level mark with the ultimate goal of getting them reduced" unless other countries retaliate. He also suggested that the markets would "adjust" in time, denying that global economies were being impacted.

Bessent's comments contrast with the views of some experts, who have harshly criticized the tariffs. Federal Reserve Chair Jerome Powell, for instance, stated that the tariffs were "significantly larger than expected" and were "highly likely" to cause more inflation. However, Bessent remained optimistic, telling Tucker Carlson in an interview that he had a "high confidence ratio" that the tariffs would work.

The Treasury Secretary's remarks also come as Trump has faced criticism for his response to the market turmoil. Democrats have called out Trump for being in a "billionaire bubble," as Sen. Chuck Schumer put it, while millions watched their investments sink. Sen. Ben Ray Luján, a Democrat from New Mexico, said, "While the American people are trying to put food on the table, I see that Donald Trump’s out there playing golf.” Trump, however, has remained defiant, vowing to stay the course and describing his policies as a necessary step to encourage companies to relocate their operations to the United States.

Meanwhile, Trump has also celebrated a new report showing the U.S. added 228,000 jobs in March, beating expectations. Although the numbers were a snapshot of the economy before the tariff announcement, Trump claimed vindication, saying they already show his moves are working. He also lashed out at foreign leaders, criticizing China for announcing its own tariffs on U.S. imports and claiming that Vietnam wants to eliminate its tariffs on U.S. goods if it can make a deal with the U.S.

Despite the market turmoil, Bessent's remarks suggest that the administration remains confident in its tariff policies. The Treasury Secretary's comments come as the administration continues to field angry calls from executives, some of whom are weighing whether to sue the administration over the tariffs. However, Bessent's remarks suggest that the administration remains committed to its policies, despite the market turmoil and criticism from experts.