Treasury Secretary Scott Bessent said on Tuesday that he thought an extension of President Trump’s 2017 tax cuts could be complete as soon as July 4 and that the administration would then shift its attention to deregulation.
His comments, which were made during remarks at a private JP Morgan investor event, outlined how he expected Mr. Trump’s economic agenda to play out for the rest of the year.
The comments came as policymakers around the world gathered in Washington for the spring meetings of the International Monetary Fund and the World Bank at a time of heightened anxiety over rising trade tension. The I.M.F. downgraded its outlook for growth globally and in the United States as a result of the tariffs that Mr. Trump has imposed on America’s trading partners.
Mr. Bessent, who is negotiating trade deals with several countries, suggested that the uncertainty over trade could subside in the coming months and that the administration would be able to focus on other priorities. He has made the case that trade is just one part of an economic agenda that will stimulate economic growth and make the U.S. economy less reliant on government spending.
The Treasury secretary said he believed that the House could pass tax legislation by Memorial Day and that the entire bill could be finalized by early July.
“I’m optimistic, maybe we can have the tax bill done by 4th of July,” Mr. Bessent said, according to a person in the room who spoke on condition of anonymity to discuss a private event. “It’s sequencing, tariffs, tax bill — some certainty on that, then deregulation was always going to take longer.”
Republicans have been working on tax legislation that will extend much of the 2017 tax law. Mr. Trump has also been pushing for new measures that would eliminate taxes on tips and Social Security income.
However, the trade war has roiled markets in recent weeks has dominated the discussion among policymakers gathered this week in Washington. The I.M.F. noted that although some of the tariffs that have been enacted by the U.S. are currently paused, the steep tariffs on China will weigh heavily on global growth.
Mr. Trump has imposed a 10 percent tariff on nearly all imports, along with punishing levies of at least 145 percent on Chinese goods that come into the United States. Mr. Trump also imposed what he calls “reciprocal” tariffs on America’s largest trading partners, including the European Union, Japan, South Korea and Taiwan, although he has paused those until July as his administration works to secure bilateral trade deals.
In his remarks, which were reported earlier by Bloomberg News, Mr. Bessent expressed optimism that the standoff with China could ease.
“I would posit that over the very near future, there will be a de-escalation,” Mr. Bessent said. “We have an embargo now, on both sides.”
Mr. Bessent acknowledged that the negotiations with China could be a “slog,” but added that “neither side thinks the status quo is sustainable.”
Asked about negotiations with China later on Tuesday, Mr. Trump said he thought a fair deal could be reached quickly.
“We’re going to be very nice, they’re going to be very nice, and we’ll see what happens,” Mr. Trump said. “But ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States.”
Alan Rappeport is an economic policy reporter for The Times, based in Washington. He covers the Treasury Department and writes about taxes, trade and fiscal matters.
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