Becent US Treasury: "Tariff Goal is Manufacturing Reshoring"

"Trump Focuses on Lowering 10-Year Treasury Yield"

Scott Bessent, U.S. Treasury Secretary, stated that President Donald Trump's tariff plan aims to bring manufacturing back to the United States. Regarding concerns that President Trump is pressuring the Federal Reserve (Fed) to cut interest rates, he drew a line by saying that the focus is only on lowering the 10-year Treasury bond yield.

In an interview with Fox Business on the 5th (local time), Secretary Bessent said, "President Trump is pursuing different strategies through different tariffs."

Scott Bessent, U.S. Secretary of the Treasury, is being interviewed by Fox Business on the 5th (local time). Photo by AP Yonhap News

He explained that the recent tariff threats against Colombia, Mexico, and Canada are intended to prompt these governments to take action on immigration and other issues.

However, overall, the tariffs are focused on rebuilding manufacturing in key sectors of the U.S., targeting the medical supplies and shipbuilding industries. He said this would increase corporate profits and ultimately lead to a reduction in imports due to the tariffs themselves. President Trump began imposing an additional 10% general tariff on Chinese imports starting the day before. There is also a plan to impose tariffs on the European Union (EU) soon.

Regarding concerns that President Trump is trying to intervene in the Fed's interest rate decisions, he said, "He does not demand that the Fed lower rates," adding, "President Trump and I are focused on the 10-year Treasury bond yield." He continued, "I will only talk about what they have done, and will not discuss what they should do in the future."

After the Fed's decision to keep the benchmark interest rate unchanged last month, President Trump criticized Fed Chair Jerome Powell and the Fed on his social media platform Truth Social, saying, "They have failed to solve the problems caused by inflation." In his virtual speech at the World Economic Forum (WEF, Davos Forum), he also said, "I will demand that interest rates be lowered immediately."

He reiterated his previous view that expanding energy supply would reduce inflation. He said, "(For working-class Americans) energy factors are one of the most reliable indicators of long-term inflation expectations," adding, "If gasoline and heating oil prices can be lowered again, it will not only save consumers money but also help recover from the high inflation of recent years with optimism about the future."

Secretary Bessent said that President Trump believes that if energy prices fall and economic regulations are eased, interest rates and exchange rates will naturally resolve themselves.

Secretary Bessent emphasized the '3-3-3' plan, which aims to reduce the fiscal deficit to 3% of GDP, increase daily oil production by 3 million barrels, and maintain an economic growth rate of 3%. He said, "Now that I am in this position, I believe in it more than ever," adding that while the previous Joe Biden administration promoted economic growth through government spending, the Trump administration is pursuing private-led growth through capital expenditure and the return of overseas manufacturing jobs.

Regarding media reports that the Department of Government Efficiency (DOGE), led by Tesla CEO Elon Musk, has gained access to the Treasury Department's payment system controlling federal budget expenditures, he said, "They are not tampering with the Treasury's payment system," explaining, "An investigation is currently underway to see if more accountability, accuracy, and traceability can be ensured and whether funds are going to the right places." He also added that the Department of Government Efficiency "will not fail."

On the tax cuts scheduled to expire at the end of this year, Secretary Bessent said, "President Trump came in to do big things, and one of the big things this administration wants to do is to make the 2017 Tax Cuts and Jobs Act permanent," adding, "Making the tax cuts permanent will keep the U.S. as the world's number one economy in terms of growth."