Treasury Secretary Scott Bessent declared that access to “cheap goods is not the essence of the American Dream” in a swift defense of President Donald Trump’s tariffs that have led to a turbulent stock market.
The president imposed his long-anticipated 25 percent tariffs on Mexico and Canada as well as an additional 10 percent tariff on China on Tuesday, causing a rollercoaster of a stock market. Days later, his treasury secretary doubled down on Trump’s policy stance. It came before Trump announced Thursday a delay in enacting tariffs on both Canada and Mexico.
“Access to cheap goods is not the essence of the American dream,” Bessent, whose net worth is estimated to exceed $500 million, said Thursday during a speech to the Economic Club of New York. “The American Dream is rooted in the concept that any citizen can achieve prosperity, upward mobility, and economic security. For too long, the designers of multilateral trade deals have lost sight of this.”
Americans have long relied on cheap goods from other countries to purchase items they want - at prices they can afford. That could change with tariffs that are designed to boost American products, but economists warn it will raise prices on foreign-made products.
Although Trump has insisted the contrary, American consumers and importers will pay for tariffs. The president has previously explained that the tariffs are the result of the influx of drugs, namely fentanyl, coming into the U.S. from its neighbors.
“To the extent that another country’s practices harm our own economy and people, the United States will respond. This is the America First Trade Policy,” Bessent said.
In response to the Tuesday tariffs, each of the countries, the U.S. largest trading partners, rolled out retaliatory levies in what appeared to be the start of a trade war.
When announcing retaliatory tariffs, Canadian Prime Minister Justin Trudeau said “there is no justification for these actions” and vowed to not let these levies go “unanswered.”
Bessent on Thursday called the Canadian leader a “numbskull” for the move.
"As President Trump has said many times, ‘tariff’ is his favorite word. I would say that ‘reciprocal’ is probably his second favorite word," Bessent continued. "If you want to be a numbskull like Justin Trudeau and say, 'Oh, we're going to do this,' then ... tariffs are going to go up. But if you want to sit back, have a discussion with the Commerce Department, [U.S. Trade Representative]... I am happy to have a discussion with our foreign counterpart."
Trump announced a pause on the tariffs on some goods from Mexico and Canada, for a month, just two days after they took effect. But it hasn’t eased the markets, with the Dow Jones Industrial Average tumbling more than 400 points Thursday.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement. This Agreement is until April 2nd,” he said in a statement posted to his Truth Social platform.
