This week, President Donald Trump praised Treasury Secretary Scott Bessent, calling his leadership “fantastic” and hinting at Bessent’s importance to the administration’s economic strategy. “Where is Scott? We were thinking about him for the Fed, but he wants no part of it,” Trump said during a rally, underscoring Bessent’s value in his current role. This endorsement has stirred conversations across conservative media, amplifying Bessent’s rising influence in Trump’s economic circle.
Bessent has become central to the administration’s fiscal policies, particularly with the proposal to send $2,000 checks to working families funded by revenue from tariffs. With nearly $200 billion collected in tariffs through the third quarter of 2023, these payments aim to alleviate the burden of higher import prices. “The dividends would be for working families. We will have an income limit,” Bessent explained on a recent Fox News appearance, clarifying eligibility criteria based on prior stimulus checks.
Tariffs at Historical Highs Fuel Policy Debate
Under Trump’s administration, tariffs on imported goods have peaked, rising from 2.5% before 2017 to a staggering 17.9% in 2023, the highest rate since 1934. Critics of this strategy assert that such trade barriers will inevitably raise costs for consumers and harm American businesses. The administration defends these tariffs as necessary measures against unfair trade practices, framing them as foundational to funding domestic relief initiatives.
An analysis pointed out that the costs of the tariffs “have been passed on to Americans.” By redistributing these tariff revenues as direct payments, the administration argues it is countering rising consumer costs while reducing dependence on borrowed funds. With the national debt now exceeding $38 trillion, Bessent and Trump emphasize the importance of using existing revenues instead of accumulating more debt for relief efforts.
Legal Threats to Tariff Structure — But Alternatives Ready
As Bessent’s profile rises, he is facing challenges posed by legal concerns surrounding the administration’s trade strategy. The U.S. Supreme Court recently scrutinized Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA), which allowed broad tariff impositions. The administration asserts these tariffs are crucial for addressing persistent trade deficits and national security risks.
Trump has warned that if the court overturns these tariffs, it could leave the nation “defenseless” and diminish its global standing. If the decision shifts the way tariffs are imposed, Bessent has reportedly developed contingency plans using alternative statutory authorities. These include:
- Section 301 of the Trade Act of 1974, which investigates unfair foreign trade practices.
- Section 122 of the 1974 Act, which permits temporary tariffs of up to 15% without an investigation.
- Section 232 of the Trade Expansion Act of 1962, allowing tariffs based on national security concerns after a Commerce review.
- Section 338 of the Tariff Act of 1930, enabling tariffs of up to 50% without investigation for discriminatory practices against U.S. firms.
Legal experts suggest that courts typically refrain from second-guessing presidential decisions made on national security grounds, implying Bessent’s arguments may hold weight if future litigation arises.
Trade Tensions Amplified by BRICS Disputes
Amid domestic legal debates, international trade tensions have intensified. Following a BRICS summit this past June, where member countries criticized U.S. trade practices, Trump announced a potential 10% additional tariff on nations perceived as siding with anti-American policies. “Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% tariff,” he declared on social media, listing targeted countries that include Brazil, Russia, India, China, and South Africa.
Bessent acknowledged the administration’s assertive stance on trade negotiations, noting that “my mailbox was full last night with a lot of new offers.” With a deadline of July 9 for countries to revise their trade agreements to avoid the new tariffs, negotiations are heating up ahead of a planned implementation on August 1.
Former trade counsel John Veroneau emphasizes that courts are often hesitant to question presidential decisions made on national security grounds, suggesting a strong legal foundation for Bessent’s defense of Trump’s tariff policies.
Broad Implications — and a Rising Political Profile
Bessent’s visibility is growing, not just for his policy execution but also due to Trump’s public endorsement of his capabilities. While some pondered whether Bessent might be a candidate for the Federal Reserve chair, Trump’s remarks indicate he is deemed too crucial in his current role. “He likes being Secretary of the Treasury. I think we’ll leave him,” Trump noted approvingly, solidifying Bessent’s standing within the administration.
With over $195 billion in tariff revenue flowing under his direction, a landscape laden with legal complexities, and an increasingly volatile global environment shaping U.S. trade strategies, Bessent finds himself at the heart of a significant economic agenda. His performance has not gone unnoticed, with Trump’s tweet capturing the sentiment: “Scott is crushing it right now!”
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