Trump Completes Appointment of 15 Second-Term Cabinet Members
Secretary of Treasury Bessent... Leads Tariff Hikes and IRA Reform
Formed Mainly with Loyalists... Accelerating America First Policy
Donald Trump, the President-elect of the United States, has effectively completed the formation of his second-term administration by nominating Scott Bessent, CEO of the hedge fund Key Square Group, as Treasury Secretary, the economic chief. In less than three weeks after his election victory, he rapidly finalized the composition of his second-term administration, including 15 cabinet members centered around loyalists, preparing to vigorously push the "America First" agenda?such as tariff hikes and illegal immigration bans?immediately after taking office.
Scott Bessent, CEO of Key Square Group, nominated by President-elect Donald Trump as Treasury Secretary for the second term administration
According to U.S. media reports on the 24th (local time), Bessent is expected to lead key economic policies such as tariff increases, the reduction of the Inflation Reduction Act (IRA), and pro-fossil fuel energy policies alongside major economic department heads including Howard Lutnick, co-chair of the Trump transition team and nominee for Secretary of Commerce.
On the 22nd, Trump nominated Bessent as Treasury Secretary, explaining that he "will support my efforts to maintain the U.S. dollar as the world’s reserve currency, prevent unfair trade imbalances, and create an economy focused on growth through dominance of the global energy market."
Bessent has been a defender of Trump’s core tariff policies. After the inauguration of Trump’s second-term administration in January next year, he is expected to push for a universal tariff of 10-20% on all imports and a 60% tariff on Chinese goods in coordination with the Department of Commerce, the U.S. Trade Representative (USTR), and other relevant agencies. However, since he is not a hardline tariff hawk, it is also anticipated that he will design policies to minimize market shocks such as inflation concerns. In an interview with CNBC shortly after the election, Bessent suggested "gradually imposing tariffs" and stated that Trump would keep inflation "below the target of 2%" through deregulation and energy cost reductions. Analysts interpret this as a preemptive communication effort to ease market concerns about tariff-driven inflation by a leading candidate for Treasury Secretary.
Bessent is also expected to accelerate fiscal efficiency efforts, including curbing federal government spending and reducing fiscal deficits and debt. As part of this, he is likely to pursue reforms of the IRA, which was actively promoted by the Joe Biden administration. Previously, he emphasized that "private capital allocation, not government, is very important for growth" and stressed the need to reform the distorted incentives of the IRA that encourage unproductive investments. Accordingly, it is expected that he will move to eliminate various subsidies, including the up to $7,500 tax credit for electric vehicle purchases based on the IRA. Korean companies, which have significantly increased investments in the U.S. under the IRA and the CHIPS and Science Act (CSA), will inevitably be affected.
Attention is also focused on whether Bessent will neutralize the influence of Jerome Powell, Chair of the U.S. Federal Reserve (Fed). Trump has criticized the Fed’s high interest rate policy and repeatedly pledged during his candidacy to dismiss Powell. Regarding this, Bessent proposed naming the next Fed Chair well before Powell’s term expires in May 2026. This so-called "shadow Fed Chair" idea aims to draw market attention to the future Fed Chair’s messages, thereby weakening Powell’s power. This could reignite debates over the Fed’s political independence.
Wall Street is relieved by Bessent’s nomination as Treasury Secretary, viewing him as a stable figure with a strong understanding of the market. The Washington Post (WP) described Bessent’s nomination as "an attempt by Trump, who views the stock market as a clear measure of his performance, to find a compromise between MAGA (Make America Great Again, Trump’s campaign slogan) and the world of money," adding that "Bessent is a figure proposing peace to Wall Street but is likely to support tariffs and pressure on the Fed."
Meanwhile, Trump has filled all major vacancies in his second-term administration, including the delayed Treasury Secretary appointment due to internal factional struggles. He nominated Republican House Representative Lori Chavez-Dremler as Secretary of Labor and Brooke Rollins, head of the America First Policy Institute (AFPI), as Secretary of Agriculture. Washington political circles and local media characterize the most notable feature of Trump’s second-term appointments as "yes-men." Analysts say the administration was formed mainly with loyalists and close aides rather than based on expertise or experience. Unlike the first term, no figures capable of checking Trump’s unilateral decision-making were appointed. The rise of officials from Florida, Trump’s home state, and the appointment of Fox News hosts favorable to Trump are also key characteristics.
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