Treasury Secretary Scott Bessent made it clear on Thursday that the Trump administration isn’t concerned about stock market swings.
Speaking on CNBC’s “Squawk on the Street,” Bessent said the White House is focused on long-term economic growth, not short-term fluctuations.
“We’re focused on the real economy. Can we create an environment where there are long-term gains in the market and long-term gains for the American people?” he said. “I’m not concerned about a little bit of volatility over three weeks.”
His comments come as the markets experience turbulence. The Dow Jones Industrial Average has dropped more than 7% in the past month, with losses accelerating as President Donald Trump continues to impose tariffs on key U.S. trading partners, including Canada, Mexico, and China.
Bessent says market volatility doesn’t change the administration’s strategy
Bessent insisted that stock market drops weren’t a cause for panic. He emphasized that long-term investments were more stable than short-term plays.
“The reason stocks are a safe and great investment is because you’re looking over the long term,” he said. “If you start looking at micro horizons, stocks become very risky. So we are focused over the medium-, long-term.”
He argued that economic policies under Trump’s leadership would lead to sustained growth. “I can tell you that if we put proper policies in place, it’s going to lay the groundwork for both real income gains, job gains, and continued asset gains.” Even as Bessent spoke, markets remained volatile, with stock averages swinging throughout the morning session. The Bureau of Labor Statistics reported that wholesale inflation stayed flat in February, much lower than Wall Street’s 0.3% expectation.
This came after a separate report on Wednesday that showed consumer prices had slightly dipped, offering some relief to traders worried about Trump’s tariffs fueling inflation. “Maybe the inflation is getting under control and the market is going to have some confidence in that,” Bessent said.
Bessent also reportedly told CNBC that his previous comments about a “detox period” for the U.S. economy did not mean that a recession was necessary.
“Not at all. Doesn’t have to be, because it will depend on how quickly the baton gets handed off. Our goal is to have a smooth transition. We have excess employment in the government, and those people can be moved to the private sector,” Bessent said on Thursday.
“There’s two parts to this: It’s accelerating the economy, growing the revenue base — and controlling expenses. In the U.S., we do not have a revenue problem, we have a spending problem.”
Trump threatens new tariffs as trade war escalates
Trump’s trade policies have been a major factor in recent market volatility. On Wednesday, he vowed to retaliate against the European Union (EU) for its response to his 25% tariffs on steel and aluminum imports. The EU announced counter-tariffs on 26 billion euros ($28.33 billion) worth of U.S. goods, set to take effect in April.
Speaking to reporters, Trump said the White House would respond aggressively. “We’re doing reciprocal tariffs so whatever they charge us with, we’re charging them. Nobody can complain about that,” he said. When asked if he would retaliate, he answered, “Of course I’m going to respond.”
Sitting next to Ireland’s Prime Minister Micheál Martin, Trump claimed that Ireland and other European nations had taken advantage of the U.S. for years.
“The problem is our country didn’t respond [previously],” he said. He also repeated his claim that the EU was formed to exploit the U.S., despite its stated goal of regional cooperation.
Trump then took aim at Ireland specifically, blaming the country’s low corporate tax rates for what he called a “massive trade deficit” with the U.S. “Of course they are [taking advantage],” he said.
Data from Ireland’s Central Statistics Office (CSO) shows that in 2023, Ireland recorded a 31 billion euro trade surplus with the U.S., its largest goods trade surplus that year.
Trump has consistently criticized trade imbalances, targeting Mexico, China, and Canada with tariffs early in his second term. The EU, however, had largely avoided direct penalties—until now.
On Truth Social, Trump lashed out at the EU’s latest tariffs, warning that he would triple down on trade restrictions if they didn’t reverse course.
“The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky,” he wrote.
“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S.”
Trump also took a shot at The Wall Street Journal, calling it a “Globalist” outlet that doesn’t understand trade policy. “The Globalist Wall Street Journal has no idea what they are doing or saying.
They are owned by the polluted thinking of the European Union, which was formed for the primary purpose of ‘screwing’ the United States of America,” he said.
“Their (WSJ!) thinking is antiquated and weak and very bad for the USA. But have no fear, we will WIN on everything!!! Egg prices are down, oil is down, interest rates are down, and TARIFF RELATED MONEY IS POURING INTO THE UNITED STATES.”
According to data from the European Commission, the EU had a goods trade surplus of 155.8 billion euros with the U.S. in 2023 while running a 104 billion euro deficit on services. The total value of EU-U.S. trade in goods and services for the year hit 1.6 trillion euros.
The biggest categories of EU exports to the U.S. were machinery, vehicles, chemicals, manufactured goods, and pharmaceuticals.
Since his January inauguration, Trump has repeatedly signaled that tariffs on European goods were coming. At a February 26 Cabinet meeting, he again accused the EU of blocking American exports. “They’ve really taken advantage of us,” he said.
“They don’t accept our cars, they don’t accept, essentially, our farm products. They use all sorts of reasons why not. And we accept everything of them.”
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