Treasury Secretary Scott Bessent stated on Sunday that President Donald Trump’s proposed tariffs are unlikely to raise inflation significantly. Bessent’s remarks come just two days before the tariffs are set to take effect on Tuesday. According to Bessent, China will absorb the impact of any tariffs imposed. Trump is expected to enforce 25% tariffs on imports from Mexico and Canada. Additionally, the U.S. plans to impose an extra 10% duty on Chinese imports, adding to the 10% tariff levied on February 4.
While some economists have expressed concerns that these tariffs could lead to inflation, Bessent remains confident that China’s capacity to absorb the costs will mitigate such risks. The administration’s approach aims to protect domestic industries while managing broader economic implications.
— news from Forex Factory