Treasury Secretary Scott Bessent is attempting to pull Donald Trump back from the proverbial cliff by presenting his own interpretation of the president’s “America First” economic policies.
“I wish to be clear: America first does not mean America alone. To the contrary, it is a call for deeper collaboration and mutual respect among trade partners,” Bessent said Wednesday morning during an address at the Institute of International Finance.
Bessent’s careful remarks portray a notably different position than Trump, who has continually insisted that the U.S. doesn’t actually need economic partnerships with some of its largest trading partners. Perhaps that messaging wasn’t attracting the attention of foreign leaders, who Trump is hoping will approach him to cut new economic deals.
Bessent said that instead, the U.S. was hoping to “rebalance” the international financial system.
“America first means we’re doubling down on our engagement with the international financial system,” he said.
Bessent’s blatant attempt to walk back Trump’s trade war came shortly after the president indicated he was considering reducing tariffs on China. “145 percent is very high and it won’t be that high,” Trump told reporters in the Oval Office Tuesday. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”
Bessent had told investors Tuesday that Trump’s steep tariffs on China had effectively imposed a trade embargo between the two countries, and that he expected things to deescalate soon.
Bessent’s statements Wednesday were part of meetings between the International Monetary Fund and World Bank taking place in Washington this week.
The IMF said Tuesday that Trump’s tariffs would significantly slow economic growth, both domestically and globally. The IMF’s chief economist Pierre-Olivier Gourinchas told reporters that the odds of a recession in the U.S. had increased from 25 percent in October 2024 to 40 percent.
Bessent took a moment to hit back at the global lender of last resort during his remarks. “The IMF once focused on global monetary cooperation and financial stability. Now, it spends excessive time and resources on climate change, gender, and social issues, which are not its mission,” Bessent said.
While answering questions, the Treasury secretary also insisted that the dollar would remain the reserve currency, despite the rapid de-dollarization that has resulted from Trump’s sweeping “reciprocal tariff” policy. On Monday, the ICE U.S. dollar index—which measures the dollar against foreign currencies—sank more than one percent to its lowest level since March 2022.
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