Bessent defends tariff policy as retailers weigh price hikes: "Some are and some aren't"

CBS News

2 days ago

Treasury Secretary Scott Bessent on Sunday defended the Trump administration's escalating tariff policies, saying that while some companies have already announced price hikes, he thinks others will choose not to.
"Some are and some aren't," Bessent said on "Face the Nation with Margaret Brennan." He pointed to companies like Home Depot and Amazon who have indicated they will not pass on tariff costs to consumers, whereas others, such as Walmart and Best Buy, have signaled potential price increases.
President Trump on Friday announced that the tariff on foreign steel will double from 25% to 50%, effective June 4, and accused Beijing of violating a recent trade agreement by withholding critical exports like rare earth minerals.
"I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn't want to see that happen. Because of this deal, everything quickly stabilized and China got back to business as usual," Mr. Trump wrote on Friday morning on his Truth Social app.
He added, "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!"
Mr. Trump's announcement is the latest in the tariff standoff, coming nearly two months after Mr. Trump announced "Liberation Day" tariffs on the U.S.' trading partners, eventually hiking the levy on Chinese to 145%. China responded with a 125% tariff on U.S. goods. In May, the U.S. eased the tariff on Chinese imports from 145% to 30%, including a 10% baseline levy plus a fentanyl-specific 20% levy. China agreed then to reduce its 125% tariff on American goods to 10%.
Bessent on Sunday emphasized the White House's intention is not to "decouple" from China but to "de-risk,"and defended the new trade stance as essential to national and economic security.
"What China is doing is holding back products essential for industrial supply chains in India and Europe," Bessent said. "That is not what a reliable partner does."
Retailers, however, have sounded the alarm about the ripple effects of the ongoing U.S.-China trade standoff. Walmart, Best Buy, and Target have warned that high tariffs on imports from Asia could drive up prices for American consumers.
Bessent addressed such warnings as speculative, highlighting companies who have opted not to raise prices.
"I know what Home Depot and Amazon are saying," he said. "They're not raising prices. There's a wide aperture here. Different companies are doing different things. They are making decisions based on their customers, what they think they're able to pass along to their customers, what they want to do to keep their customers."
Asked whether the administration has identified sectors where Americans will feel the impact most, Bessent pointed to easing food and energy prices, and insisted that overall inflation is falling. "Egg prices have collapsed," he said, crediting the administration's economic council and trade policies. Although egg prices have come down from the highest levels earlier this year, the Consumer Price Index showed in May that egg prices are still 49% higher than they were in May 2024.
Despite industry concerns, Bessent argued Sunday that companies often offer worst-case scenarios on earnings calls to shield themselves from legal risk.
"They have to give the worst case," he said. "Because if they haven't, and something bad happens, then they'll be sued."