On Monday’s broadcast of the Fox Business Network’s “Kudlow,” Treasury Secretary Scott Bessent defended using trade deficits to calculate tariffs and stated that the trade deficit is “a result of the terms of trades, it’s a result of our budget deficit, and it’s the result of the level of the dollar.”
Host Larry Kudlow asked Bessent if using the trade deficit as a metric to calculate tariffs makes sense.
Bessent responded, “Well, look, Larry, the trade deficit, as you and Art know, is the result of three things: It’s a result of the terms of trades, it’s a result of our budget deficit, and it’s the result of the level of the dollar. And we want a strong dollar. We are getting our budget deficit under control, which I actually think will help with the trade deficit, and then the third part is the tariff or the trade barriers which we’re seeing. So, I am confident that we will, again, as I said, the four factors will be tariffs, non-tariff trade barriers, the currency manipulation, and the — whether it’s wage or industrial subsidies. And I think we’re going to have very, very productive negotiations with these. And, again, as you said on tariffs — or as you said on taxes, Larry, the real problem has been these barriers, because what we are going to create in the U.S. through lower taxes, energy dominance, and our deregulation, our rule of law is going to be we are the best place in the world to do business, and we will continue to attract more and more industry here when these barriers come down. I am highly confident of that.”
Follow Ian Hanchett on Twitter @IanHanchett
