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

US President Trump recently announced a new global tariff policy, claiming it could bring in billions of dollars in revenue for the United States and reverse the middle-class challenges caused by foreign trade over the past decades. The newly appointed Secretary of the Treasury, Scott Bessent, in an exclusive interview with Tucker Carlson, provided an in-depth analysis of the economic logic, impact, and future prospects behind this policy.

Is the Tariff Policy a Historical Innovation with Negotiation Elements?

Bessent pointed out that Trump's tariff policy is not sudden, but a consistent stance he has held for 40 years. This new policy combines history and innovation, echoing how founding father Alexander Hamilton established the American industrial system through tariffs, while also introducing a new "negotiation tool" element to redefine the relationship between the United States and its trading partners.

"We are at the beginning of economic re-industrialization, ending the era dominated by financialization," Bessent said.

In the context of Trump or conservatives, it is often used like this:

• 「Wall Street has done excellently. Now it's Main Street's turn.」
  
  → Wall Street has already made a lot of money, and 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 are all ways of standing up for "Main Street" because these policies directly affect the working class and local businesses.

Middle Class Impacted: Tariffs Only Cause 7% Price Increase for US Consumers?

Over the past decades, especially after China joined the World Trade Organization, the manufacturing sector in the US Midwest has significantly declined, leading to a decrease in middle-class living standards, shortened lifespans, and a loss of hope for the future. Benson stated that the core purpose of Trump's tariff policy is to allow "forgotten Americans" to enjoy a decent life again.

He cited a study from MIT, pointing out that after implementing 20% tariffs on China, US consumers only bear about 7% of the price increase, refuting the claim that "tariffs will be completely passed on to consumers".

Creating a New Framework of "Economic Security as National Security"

The COVID-19 pandemic revealed the fragility of global supply chains, especially in areas like pharmaceuticals, semiconductors, and shipbuilding. Benson stated that this "test" reminds the US 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 companies to return, establish local factories, and create jobs.

A New Source of Tax Revenue? Tariffs Could Become a Pillar of Government Funding

The Trump administration expects to generate $300 billion to $600 billion in annual revenue through the new tariff mechanism. These funds are expected to be used to fulfill a series of middle-class tax cut promises, such as tax-free tips, tax-exempt Social Security income, and deductions for domestic car loan interest.

"This is not redistribution, but a reform to enhance workers' real wages and quality of life," Benson stated.

Market Volatility Due to DeepSeek: Not MAGA's Fault, But MAG7's Issue

Regarding the short-term stock market decline, Benson believes the reason is more related to China's launch of DeepSeek AI, which affected the performance of large tech stocks (MAG7), and is unrelated to Trump's tariff policy. He emphasized that if the US establishes a stable tax system, predictable business environment, and cheap energy, the stock market will ultimately benefit.

Countering Dumping, Reducing Deficit: US-China Trade Confrontation Continues

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

Ideally, the US and China will reach a rebalancing agreement in the coming years, with China increasing consumption and the US increasing manufacturing, achieving symmetrical economic competition.

Are Corporations More Important Than Governments? Global Lobbying War to Begin in the Next 3 Months

Although the new tariff policy is universally applicable, it will be adjusted based on details such as trade deficits, currency manipulation, and non-tariff barriers. Benson stated that instead of focusing on how different countries' governments will react, it's better to see how corporations respond: "The most effective way to avoid tariffs is to establish factories in the US."

DOGE Initiates Government Reform: Can the US "Do More with Less"?

Besides economic policies, the Trump administration also emphasizes government efficiency reform (DOGE project). Benson points out that just as Florida provides better public services with half the budget compared to New York, the federal government can also "slim down" through digital transformation and efficiency improvements, releasing human resources to the private sector to support industrial reshoring.

Inflation, Deficit, National Debt: Will International Investors Buy In?

As a "representative" of national debt, Benson confidently states: "The US will not default." He points out that tariff revenue and government spending cuts will improve fundamentals and enhance foreign confidence in US debt.

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

Trump vs Washington Tradition: Changing the System, Not Compensating Losers

Discussing the middle-class predicament, Benson said emotionally: "These people are not losers, the system just hasn't been fair to them." He criticizes the Democratic Party for merely pacifying low-income families with subsidies, while Trump chooses to transform the entire system, giving them a real opportunity.

In the Next Four Years, Can the US Reverse Its Fate?

Benson candidly admits that the path of US economic reform is full of uncertainties, but "the old system is no longer viable", and now is the time to be brave and try. He believes that if tariffs, tax cuts, manufacturing restoration, and government reform can work together, America's future will be stronger and fairer than now.

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