The Finance Minister Scott Bessent asked the global managing directors of Skittish Global on Monday to ignore President Trump's economic no, and to increase investments in the United States. This defended the economic agenda that warn economists, slow down economic growth and tighten inflation.
In conversation with managers, entrepreneurs and political decision -makers, Bessent argued that the Trump government's economic plans go beyond trade policy and will pay off in the long term. He asked them to concentrate on Mr. Trump's plans, to reduce taxes and regulations, which he said that the creation and production of jobs would boost.
“The tariffs are obliged to encourage companies such as theirs to invest directly in the USA,” said Bessent in comments on the Global Conference of the Milken Institute in Los Angeles. “You will be happy that you have done it – not only because we have the most productive workers in the world. In addition, we will soon have the cheapest tax and regulatory environment.”
His comments came only a few hours after Mr. Trump had ordered new tariffs on foreign film producers, a decision that many confused about the functioning of such a tax in Hollywood.
The finance minister has worked on facilitating the concerns of the investors that Mr. Trump's trading plans will destabilize the global economy. Last month, President Zölle rose in countries around the world and escalated a commercial struggle with China that earned the financial markets.
Since then, Mr. Bessent has been playing to negotiate trade agreements with dozens of countries. He also signaled that the China tariffs are not sustainable, which offers hope that Mr. Trump would soon start negotiations to reduce them.
“Our goal with trade policy is to align competitive conditions for our great American workers and companies,” said Bessent.
The headquarters are still with regard to the random approach of the Trump government to determine trading policy.
Mr. Trump ensured on Sunday evening about the social of truth that he cited his government agencies “immediately starting all films in our country with the process of introducing a 100% tariff”. On Monday, however, a spokesman for the White House said that “no final decisions about foreign film tariffs were made” and that the administration was still considering its options.
Despite Mr. Bessent's demand for investors to look at the US economy in the long term, the executives of the Milken Institute made it clear that the tariffs demanded a real tribute.
“What we hear from customers is that they are preparing for headwinds,” said Jan Fraser, the managing director of Citigroup, who found that some companies were drawing the expenses for the forward powers, some hesitated the investments and everyone was more careful, while they were waiting for the Trump management to take their tariff plans.
Harvey Schwartz, the managing director of the Carlyle Group, said that a trade war between the United States and China was problematic for the global economy and that the tariffs aroused part of the enthusiasm for Mr. Trump's economic agenda, which was spread when he took office in January.
“I think we got into the year and there was this extraordinarily high expectation and momentum, and everything was a kind of growth,” said Schwartz in a panel discussion after the statement by Mr. Bessent. “And I think with tariff policy, people were only a bit confused and unsafe because it felt dramatic in the politics of such a shift.”
He added: “This is a political initiative that we have never seen before.”
Mr. Bessent tried to shift the political discussion on tax cuts, which he predicted that the congress could pass until the beginning of July.
The Trump government works closely with the Republicans of the Congress on the tax legislation, which extend tax cuts in 2017 and offer new tax breaks for overtime, tips and social security benefits. Mr. Bessent said that the law would include tax credits and deductions for research and innovation in order to promote investments in high-tech business and tax incentives for the purchase of devices and the construction of factories.
Mr. Bessent made the case on Monday that investors have to consider the wider agenda if they thought about where they should park their money.
Mr. Bessent described Mr. Trump's policy as “mutually reinforced” and said: “In the concert, they act the same goal – to consolidate our position as a home of global capital.”
Investors have increasingly grown before Mr. Trump's politics in recent months because stocks, bonds and the dollar show signs of weakness, while the fund managers are annoyed about the uncertainty related to Mr. Trump's political approach.
The International Monetary Fund forecasted last month that global production this year would slow down from 3.3 percent in 2024 to 2.8 percent and that its prospects for the US economy were heavily downgraded.
“We clearly experience considerable turbulence in global trade,” said Kristalina Georgieva, managing director of the IMF, on Monday at the Milkken Conference. “We are now going to a new balance from a predictable trade regime that we had previously.
She added: “What the world pays for this shift, from a balance to something new is not trivial.”
Despite these concerns, Mr. Bessent said on Monday that Mr. Trump would prove “critics in establishment Circles” as wrong.
“We have the global reserve currency, the deepest and most liquidated markets and the strongest property rights,” said Bessent. “For these reasons, the United States is the most important goal for international capital.”