US Treasury Secretary Scott Bessent on Tuesday said Washington could hold off reciprocal tariffs for countries that halt practices it deems unfair, adding that officials will produce a list of levies on April 2.
This is the date on which President Donald Trump has promised reciprocal duties set to affect both US allies and competitors, with tariffs tailored to each trading partner.
“What’s going to happen on April 2 — each country will receive a number that we believe represents their tariffs,” Bessent told Fox Business in an interview, adding that the level could vary.
“We are going to go to them and say, look, here’s where we think the tariff levels are, non-tariff barriers, currency manipulation, unfair funding, labor suppression,” he added.
If they stop these practices, Bessent said, “we will not put up the tariff wall.”
He expressed optimism that on April 2, some duties “may not have to go on because a deal is pre-negotiated” or because countries swiftly approach Washington for talks once they receive their number.
Bessent also told Fox Business that he saw “no reason we need to have a recession” in the world’s biggest economy, saying “the underlying economy is healthy.”
But he dismissed the premise of guaranteeing there will not be a downturn.
He raised the idea of “a pause” as officials transition from an “unsustainable” level of government spending, saying that the Trump administration would rein in expenditures and bring manufacturing home.
Trump’s tariff plans and the uncertainty surrounding them have shaken markets in recent times, fanning fears that an economic ebb could be in the cards.
The president has referred to tariffs as a way to raise revenue, remedy trade imbalances and pressure countries to act on US concerns.
On Tuesday, Bessent stressed that Trump has identified “critical industries” — like steel and aluminum among manufacturing sectors — for which he hopes to bring production back to the United States.
He added that “we’re going to take in substantial revenues,” pointing to these as a means to offset the government deficit.
Economists note that while tariffs raise revenue for the government, they also shift demand towards domestic industries that make the protected goods.
They caution that this does not always mean a net expansion of demand.
Bessent also said Tuesday that the Treasury is working with Congress on further outbound investment rules: “We will make sure that our outbound investment doesn’t turn around and get used against us.”
