On Tuesday, US Treasury Secretary Scott Bessent stated that tariffs are an essential component of President Donald Trump's economic strategy and that they have the potential to be a source of revenue for the government to assist in funding investment.


Bessent's remarks came shortly after he met with Australian Treasurer Jim Chalmers, whose country is pushing for an exemption from Trump's steep levies on steel and aluminum imports.

 Since taking office in January, Trump has unveiled tariff plans threatening to hit allies and adversaries alike, including 25 percent levies on steel and aluminum imports to take place next month.

 Bessent stated that tariffs are an essential component of Trump's broader economic strategy in a broad speech delivered at the Australian Embassy. They are able to boost US industrial capacity, help improve national security, and can be "an important source of government revenue, which can help fund investments," he added.

 Bessent stated that tariffs can also be "used as a tool to correct and manage the internal imbalances in other economies" by adjusting the amount of excess supply that American consumers consume. On China, Bessent said the world's second largest economy needed more consumption.

 He stated that Beijing's expansion of its industrial capacity could pose challenges for other industrial economies. "We have to push back and tell them that they cannot export their deflation to the rest of the world," he said.

 He added, "China really needs more consumption" and less exports. Domestically, Bessent said the Trump administration's goal is to "reprivatize the economy," noting that much of the job growth in the past four years has been concentrated in the public and government-adjacent sector.

 He reiterated a need to end "government waste" and defended the Department of Government Efficiency (DOGE), saying this was not a "department of government elimination."

 Bessent stated that government cuts would be accompanied by deregulation, adding that reporting requirements have become increasingly burdensome for smaller financial institutions. Bessent stated that the Treasury Department will "streamline best practice regulations" to ensure a level playing field.