WASHINGTON — US Treasury Secretary Scott Bessent announced Tuesday that the Trump administration intends to restore previous tariff levels by the beginning of July. The move follows a recent Supreme Court setback regarding the administration's use of emergency powers to impose duties.
Speaking at a Wall Street Journal event in Washington, Bessent explained that the Treasury will implement or conduct Section 301 studies to bypass recent judicial rulings. According to a report from r/economics, because the Section 301 authority has already been tested in court, Bessent believes business leaders can now begin making capital expenditure decisions based on this timeline.
US-China maritime blockade and energy disputes
While discussing domestic trade policy, Bessent also leveled sharp criticism against China's role in the ongoing Middle East conflict. According to La Tercera, the Treasury Secretary described Beijing as an 'unreliable global partner' for its actions during the recent period of instability.
Bessent accused China of hoarding petroleum supplies and restricting the export of certain goods instead of helping to alleviate the global shortage. This tension follows a recent order from President Donald Trump that led the US military to begin a blockade of all maritime traffic entering or leaving Iranian ports.
Bessent explicitly stated that the blockade would extend to Chinese tankers attempting to transport Iranian crude through the Strait of Hormuz. 'They will not be able to get their oil. They can get oil, but not Iranian oil,' Bessent told reporters in Washington, as reported by La Tercera.
Despite the maritime dispute, Bessent suggested that communication between the two nations remains functional. He declined to comment on whether the friction would impact Trump's scheduled visit to China in mid-May, but noted that the relationship has seen 'great stability' since last summer.
Turning back to the US economy, Bessent expressed optimism regarding domestic growth despite the economic pressures of the Iran war. He projected that US growth could 'easily exceed three, three-and-a-half percent this year.'
However, the Treasury Secretary noted a discrepancy in recent inflation data. While he pointed to declining core inflation as a positive sign, r/economics reported that the March figures also showed a steep rise in the headline consumer price index due to surging gas prices. Bessent suggested that the Federal Reserve may be miscalculating the trajectory of inflation, stating, 'I think the Fed has been wrong on inflation, and the core inflation is coming down.'
