U.S. Treasury Secretary Scott Bessent Defends Trump Tariff Policy Amid Economic Debate on CBS

In a fiery Sunday interview on CBS’s Face the Nation, U.S. Treasury Secretary Scott Bessent strongly pushed back against host Margaret Brennan’s warnings that tariffs imposed by the Trump administration could lead to higher consumer prices. The debate came just days after the latest inflation data showed the lowest rise in prices in over four years, fueling a renewed discussion over the real impact of these trade policies on everyday Americans.

Brennan, who previously cautioned in March about the tariffs’ potential to drive inflation, pressed Bessent to address concerns that President Donald Trump’s tariff strategy on imported goods was causing price increases at major retailers. However, Bessent countered that much of the earlier “alarmist” talk had not come to pass.

“Everything has been alarmist, but inflation numbers are actually dropping,” Bessent said, referencing the Bureau of Labor Statistics’ report showing the inflation rate fell to 2.3% in April, marking a four-year low.

The CBS anchor questioned how retail giants like Walmart and Target were navigating the uncertainty surrounding tariffs, especially as some suppliers hinted at raising prices to offset increased costs. Brennan warned, “When you go back-to-school shopping, things are going to cost more.”

Bessent, however, disputed this claim, citing statements from companies like Home Depot that they do not plan to raise prices in response to the tariffs. He emphasized that the data so far doesn’t support the claim that tariffs are causing widespread price hikes.

Nevertheless, Brennan maintained that consumers are likely to feel the economic pinch, quoting a Wall Street Journal opinion piece by Karl Rove which argued that companies such as Walmart might struggle to break even if they can’t pass on the added costs to shoppers.

“The reality for consumers is either less inventory, higher prices, or both,” she said, highlighting the difficult choices retailers face in this uncertain economic environment.

Bessent reminded Brennan of her own previous remarks from March, when she predicted tariffs could fuel inflation — a scenario that, according to him, has not materialized. “Margaret, when we were here in March, you said there was going to be big inflation. There hasn’t been any inflation,” he said. “Actually, the inflation numbers are the best in four years. So why don’t we stop trying to say this could happen and wait and see what does happen?”

The interview turned to Trump’s recent announcement that tariffs on steel imports would be doubled, raising further questions about the construction industry’s prospects. Brennan asked Bessent to explain how this move might affect building costs nationwide.

During their March discussion, Brennan referenced a study by the Peterson Institute, a prominent economic think tank, which forecast that Trump’s tariffs — then set at 10% on imports from China and 25% on those from Canada and Mexico — could cost U.S. households an additional $1,200 per year.

The tariff strategy has not been without controversy or legal challenges. Last week, a federal court unanimously ruled to block a broad set of tariffs imposed on dozens of countries, stating that President Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA).

Brennan also touched on a previous confrontation with Commerce Secretary Howard Lutnick, where she questioned whether artificial intelligence (AI) had been used in the crafting of tariff announcements — a controversial claim that underscored the confusion and unpredictability surrounding the administration’s trade policies.

As legal battles continue and economic impacts unfold, the debate over tariffs remains a hot-button issue, underscoring the challenges policymakers face in balancing protectionist measures with consumer costs in a globalized economy.