Besent and Rutnik Face-Off
Trump Urges Treasury Secretary to Fulfill Tariff Pledge
Third Candidates Including Lighthizer Also Considered
As candidates vie behind the scenes for the position of Treasury Secretary in the second Trump administration, the determination to implement tariff increase policies has emerged as a key factor in the selection of the Treasury Secretary. Initially, Scott Bessent, CEO of the hedge fund Key Square Group, was considered a leading candidate, but internal factional battles have intensified as Elon Musk, Tesla CEO and close associate of President-elect Donald Trump, supports another candidate. It is also reported that Trump may appoint a third candidate as Treasury Secretary.
Scott Bessent (left), CEO of hedge fund Key Square Group, mentioned as a candidate for Treasury Secretary in the second Trump administration, and Howard Lutnick, co-chairman of Donald Trump’s presidential transition team and CEO of investment bank Cantor Fitzgerald
According to major foreign media on the 17th (local time), advisors to President-elect Trump have demanded that Treasury Secretary candidates demonstrate a strong commitment to implementing broad tariff pledges. During his campaign, Trump had announced a universal tariff of 10-20 percentage points on all imports and a 60 percentage point tariff on China.
This demand from the Trump camp is said to be particularly focused on Bessent, who has been considered a leading candidate for Treasury Secretary. Analysts suggest that Bessent’s past media interviews have become problematic. Prior to the election, Bessent described Trump’s tariff pledges as "extremist" in an interview with a British economic daily and said, "In my view, ultimately, he is a free trader." This contradicts the philosophy of Trump, who has branded himself as the "Tariff Man." However, Bessent has recently changed his stance on tariffs and in an interview with Fox News on the 15th, he described tariffs as "a means to empower Americans."
The Trump camp’s demand to show commitment to tariff pledge implementation came amid internal strife among close aides competing for the Treasury Secretary position. Initially, Bessent was almost confirmed as the first Treasury Secretary candidate for Trump’s second term, but Musk publicly endorsed Howard Lutnick, co-chair of Trump’s transition team and CEO of investment bank Cantor Fitzgerald, turning the contest into a two-way race.
On the 16th, Musk posted on his social media platform X (formerly Twitter), which he owns, stating that Lutnick is "someone who can actually bring about change," expressing his support for him as Treasury Secretary. He downplayed Bessent as "the usual choice." On the same day, Robert Kennedy Jr., who is slated to be Secretary of Health and Human Services in the new administration, also expressed support for Lutnick on X, calling him "the strongest supporter of the free currency Bitcoin." It is reported that Bessent spoke with Musk shortly after Musk’s post on X.
According to Washington circles and Wall Street, Bessent is regarded as a stable figure in the business community. In contrast, Lutnick is known to have the backing of hardliners among Trump’s close associates. However, there is analysis that Lutnick’s past donations to both Republican and Democratic politicians, including former Secretary of State Hillary Clinton and Vice President Kamala Harris, could be an obstacle to his appointment in the next administration. Additionally, just as the Republicans elected Senator John Thune rather than Rick Scott?whom Musk supported?as the next Senate Majority Leader, there are also criticisms that Musk himself has political limitations.
Among Trump’s close aides, the possibility of a third candidate being appointed as Treasury Secretary is also being discussed. Robert Lighthizer, former U.S. Trade Representative (USTR), Senator William Hagerty, and Mark Rowan, CEO of Apollo Global Management, are known to be among the candidates. Particularly, former USTR Lighthizer, who designed trade policies during Trump’s first term, holds the philosophy that trade deficits must be resolved through tariffs. He is being considered not only for USTR and Secretary of Commerce positions in Trump’s second term but also as a candidate for Treasury Secretary.
Bloomberg News reported, "President-elect Trump also seems frustrated by the internal strife over the Treasury Secretary position," adding, "As pressure from the camps of Bessent and Lutnick mounts on Trump, tensions are rising, increasing the likelihood of another candidate emerging."
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