U.S. Treasury Secretary reveals Trump's new tariff policy: This is the first step to "restart American manufacturing".

U.S. President Trump recently announced a new global tariff policy, claiming it could bring in 100s of billions of dollars in revenue for the United States and reverse the middle-class plight caused by foreign trade over the past few decades. Newly appointed Treasury Secretary Scott Bessent provided an in-depth analysis of the economic logic, impact, and future outlook behind this policy during an interview with Tucker Carlson.

Is the tariff policy a historical innovation that incorporates negotiation elements?

Benson pointed out that Trump's tariff policy did not come out of nowhere, but has been his consistent stance for 40 years. This new policy combines history and innovation, echoing the founding father Alexander Hamilton's establishment of the American industrial system through tariffs on one hand, while also incorporating new elements of "negotiation tools" to redefine the relationship between the United States and its trade partners.

"We are at the beginning of economic re-industrialization, bringing an end to the era dominated by financialization," said Bensent.

This is often used in the context of Trump or conservatives:

"Wall Street has done excellently. Now it’s Main Street’s turn." → Wall Street has made a lot of money, now it's Main Street's turn. (In other words, it's time to take care of the people.)

Advocating for tax cuts, tariffs, and protecting domestic manufacturing all help the "Main Street" come to the forefront, as these policies have a more direct impact on the working class and local businesses.

Middle class affected: Tariffs only cause a 7% increase for American consumers?

In the past few decades, especially since China joined the World Trade Organization, the manufacturing industry in the American Midwest has significantly declined, leading to a decrease in the quality of life and life expectancy for the middle class, resulting in a loss of hope for the future. Bensent stated that the core purpose of Trump's tariff policy is to restore a decent life for the "forgotten Americans."

He cited the research from MIT (MIT), pointing out that after the implementation of the 20% tariff on China, American consumers only bore about 7% of the price increase, refuting the claim that "tariffs will be fully passed on to consumers."

Build a new framework of "Economic Security is National Security"

The COVID-19 pandemic has revealed the vulnerabilities of global supply chains, particularly in sectors such as pharmaceuticals, semiconductors, and shipbuilding. Bansent stated that this "test" reminds the United States that it must enhance its strategic manufacturing capabilities, making domestic economic security a part of national security.

He emphasized that the core belief of the Trump team is: "If you want to sell to America, you must manufacture in America," which will attract businesses to return, establish local factories, and create jobs.

New source of revenue? Tariffs may become a pillar of government financing.

The Trump administration expects to generate $300 billion to $600 billion in revenue annually through a new tariff mechanism. This funding is anticipated to be used to fulfill a series of middle-class tax cut promises, such as tax-free tips, tax exemptions on Social Security income, and deductions for domestic car loan interest.

"This is not redistribution, but a reform to improve the real wages and quality of life for workers," Bensent stated.

Market turbulence due to DeepSeek: It's not MAGA's fault, it's a MAG7 issue.

Regarding the short-term decline in the stock market, Bensent believes the reason is more due to China's launch of DeepSeek AI, which has affected the performance of large tech stocks (MAG7), rather than being related to Trump's tariff policies. He emphasized that if the U.S. establishes a stable tax system, a predictable business environment, and cheap energy, the stock market will ultimately benefit.

Anti-dumping and reducing deficits: The trade showdown between China and the U.S. is far from over.

China is one of the biggest challenges, with its export-oriented economic structure severely imbalanced, currently even facing a deflationary recession. Bensent believes that China's manufacturing model is difficult to adjust, and tariffs are a counterattack against its unequal trade structure.

Ideally, China and the U.S. will reach a rebalancing agreement in the coming years, with China increasing consumption and the U.S. boosting manufacturing to achieve symmetrical economic competition.

Are companies more important than governments? The global lobbying battle will begin in the next 3 months.

Although the new tariff policy applies uniformly, it will be adjusted according to details such as each country's trade deficit, currency manipulation, and non-tariff barriers. Bensent stated that rather than focusing on how governments of various countries react, it is better to observe how companies respond: "The most effective way to avoid tariffs is to set up factories in the United States."

DOGE Takes Action to Reform the Government: Can the U.S. "Do More with Less"?

In addition to economic policies, the Trump administration also emphasized government efficiency reforms (DOGE program). Bensent pointed out that just as Florida achieves better public services than New York with half the budget, the federal government can also "slim down" through digital transformation and efficiency improvements, releasing manpower to the private sector in conjunction with the return of industries.

Inflation, deficits, national debt: Will international investors buy in?

As a "business representative" for government bonds, Bensent confidently stated, "The United States will not default." He pointed out that tariff revenues and government spending cuts will improve the fundamentals and enhance foreign confidence in U.S. Treasury bonds.

Although the market has not yet fully reflected the policy benefits, he believes that the "strong dollar policy" and improvements in economic fundamentals will gradually stabilize U.S. finances.

Trump vs Washington Tradition: Change the System, Not Compensate the Losers

When talking about the middle-class dilemma, Vincent said emotionally: "These people are not losers; the system just hasn't been fair to them." He criticized the Democratic Party for merely soothing low-income families with subsidies, while Trump chose to overhaul the entire system to give them a real opportunity.

Can the United States turn its fate around in the next four years?

Bensent admitted that the path of economic reform in the United States is filled with uncertainty, but "the old system is no longer viable." Now is the time for brave attempts. He believes that if tariffs, tax cuts, re-manufacturing, and government reforms can work together, the future of the United States will be stronger and fairer than it is now.

"This is not just an economic policy, this is a renewed commitment to the American Dream," he said.

This article reveals U.S. Treasury Secretary's insights on Trump's new tariff policy: This is the "first step to restart American manufacturing". First appeared in Chain News ABMedia.