- The Treasury secretary said “strategic uncertainty” is a tactic as the U.S. engages in talks over the Trump administration’s tariffs, arguing that too much certainty would allow other countries to “play us in the negotiations.” That comes as companies, trading partners, and financial markets have endured whiplash from on-again, off-again tariffs.
Treasury Secretary Scott Bessent suggested that the Trump administration’s tariff zig-zags are a feature, not a bug.
During an interview on CNN’s State of the Union that aired on Sunday, he was asked about the whiplash from the president’s on-again, off-again tariffs, and replied that the administration’s negotiating tactic is “strategic uncertainty.”
“If we were to give too much certainty to the other countries, then they would play us in the negotiations,” Bessent explained. “I am confident that at the end of these negotiations, both the retailers, the American people and the American workers will be better off.”
Since President Donald Trump launched his trade war, he has repeatedly imposed steep tariffs, then put them on hold or partially rolled them back soon after.
That was on display as recently as Monday, when the U.S. and China agreed to slash their respective duties on each other for 90 days.
More whiplash could be on the way amid talks over the so-called reciprocal tariffs that Trump unveiled on “Liberation Day” then put on hold days later.
On Friday, Trump said the U.S. can’t negotiate with all the countries that were hit with tariffs, so some trading partners will find out in a letter in two or three weeks what rate they will face.
Bessent said Sunday that any countries not negotiating in good faith will see tariffs snap back to the Liberation Day level. He added that there are 18 “important” trading partners the U.S. is most focused on, while there are a lot smaller ones for which “we can just come up with a number.”
“My other sense is that we will do a lot of regional deals — ‘this is the rate for Central America, this is the rate for this part of Africa,'” Bessent added.
Going back to the April 2 tariff levels would likely dampen financial markets, which have rallied as Trump continues to ease his stance on tariffs. But levies on China will still be at historically high levels, even as they drop to 30% from 145%.
When asked about the tariff impact on small businesses that rely on Chinese imports, Bessent told CNN that the U.S. “will continue trading with China in the kinds of products that these small businesses are talking about at lower tariff levels.”
Meanwhile, Trump took a hard line against Walmart on Saturday, when he posted on Truth Social that the retail giant must “eat the tariffs” and not hike prices.
Bessent said he spoke with CEO Doug McMillon on Saturday and told CNN that Walmart will absorb “some of the tariffs, some may get passed on to consumers.” Somebody with knowledge of the situation told Fortune that the call was scheduled before Trump’s post and wasn’t a reaction to it.
Walmart declined to comment. On Thursday, executives told analysts they’re doing everything they can to absorb the tariffs but that higher prices are unavoidable.
In a separate interview with NBC’s Meet the Press, Bessent said he didn’t pressure Walmart’s chief during their call.
“Doug and I have a very good relationship so I just wanted to hear it from him rather than second- and third-hand from the press,” he said. “This is all from their earnings call and on an earnings call you have to give the worst-case scenario.”
