US Treasury Secretary Scott Bessent said President Donald Trump uses “strategic uncertainty” in business negotiations with world leaders.
During an ABC News interview with the co-announcing “This Week”, Martha Raddatz on Sunday, Bessent firmly defended Trump's approach in terms of prices despite the feeling of voter on his treatment of the economy.
“In game theory, this is called” strategic uncertainty “,” said Bessent about the Trump's back-and-and-forth strategy. “So you are not going to tell the person on the other side of the negotiation where you will find yourself. No one is better to create this lever effect than President Trump.”
“He showed these high prices-and here is the stick,” he continued. “And the carrot is” come to us, remove your prices, remove your non-pricing commercial barriers, stop manipulating your currency, stop subsidizing the workforce and the capital, then we can speak. “”
In early April, Trump made waves worldwide when he announced a series of steep prices on dozens of countries, many of whom were reliable business partners for decades.
However, only a few days after his announcement, Trump interrupted the highest rates for 90 days, retaining a basic rate of 10% for most countries.
Trump's motivation to announce the range of samples is to attack the trade deficit and redirect what it has long argued to be pricing policies that have placed the United States – and in particular its manufacturing sector – in a major disadvantage on the world market.
Trump's trade policy has caused friction in its long -standing alliances with Canada and Mexico and has torn all relationships it had with China. Trump's shares this month also contributed to the volatility of the equity and bond markets. Many economists have criticized the business strategy of the administration, questioning Trump's dramatic and unpredictable approach.
Trump has implemented a rate of 145% tariff on Chinese goods, which makes Beijing respond by placing 125% tariffs on American products – a severe economic escalation between the two world superpowers.
However, Bessent said on Sunday that he thought there was a “way” to resolve the commercial dispute with China.
“The first path will be a de-escalation, which I think the Chinese should have,” he said.
“A trade agreement can take months, but an agreement in principle and good behavior and remain in the parameters of the agreement by our business partners can prevent prices from returning to the maximum level.”
