US Treasury: "Don't Cross Trump"... Trudeau Called 'Fool'

Speech to Wall Street CEOs at New York Economic Club
Warning Issued Citing Trudeau's Retaliatory Tariffs
On Inflation Concerns: "I Am Not Worried"

Scott Besent, U.S. Secretary of the Treasury

U.S. Treasury Secretary Scott Bessent sharply criticized Canadian Prime Minister Justin Trudeau, who retaliated against President Donald Trump's tariff policies with counter-tariffs, calling him a "numbskull" and warning that greater consequences would follow if Trudeau did not align with Trump's tariff policies.

According to U.S. news agencies Reuters and Bloomberg, Secretary Bessent said during a speech at the New York Economic Club on the same day, addressing Wall Street CEOs, "But if you want to sit down calmly and discuss with the U.S. Department of Commerce or the U.S. Trade Representative (USTR), I am willing to engage in dialogue with foreign partners."

Secretary Bessent borrowed the concept of the "American Dream," meaning that anyone in the U.S. can aspire to economic wealth and social mobility, to highlight the positive effects of tariff policies. He stated, "Those who create multilateral trade agreements have overlooked this for far too long," and added, "International economic relations that do not benefit the American people must be reconsidered."

President Trump imposed a 25% tariff on Canada and Mexico on the 4th, and just two days later on the 6th, applied a temporary exemption to Mexican products, including those in the automobile industry. Some Canadian products were also included. However, the White House maintains that the plan to impose reciprocal tariffs on July 2 remains unchanged. While President Trump exchanged insults with Prime Minister Trudeau over retaliatory tariffs, he expressed respect and warmth toward Claudia Sheinbaum, the President of Mexico.

Regarding concerns that the Trump administration's tariff policies would fuel a rebound in inflation, Secretary Bessent dismissed them, saying, "I am not worried. It is just a one-time price adjustment." Earlier, the market had speculated that global supply chain disruptions and tariffs causing consumer price increases would trigger inflation worldwide, including in the U.S.

He also presented a "carrot" for the U.S. financial industry. Secretary Bessent hinted at broad deregulation of banks, citing the supplementary leverage ratio (SLR) regulation introduced after the financial crisis to strengthen the capital soundness of large banks as an example of a focus area.

The plan is to change financial regulations that have imposed excessive burdens on banks and to correct flawed supervisory culture, which had caused dissatisfaction in the U.S. financial industry. Wall Street expects that the Trump administration will encourage large banks to purchase U.S. Treasury bonds by easing SLR regulations, thereby inducing a decline in U.S. Treasury yields.

Meanwhile, Secretary Bessent has previously stated that, together with President Trump, the U.S. is focusing on lowering the 10-year Treasury bond yield rather than the Federal Reserve's benchmark interest rate, and he reaffirmed this stance in his speech that day. He said, "We are concentrating on the 10-year Treasury bond yield and are considering what we can do."