US Treasury Secretary: "Tariffs Could Be Restored by Early July"... Also Calls for Rate Cut

Bessent Speaks at WSJ Event

"Prices Falling Excluding Energy and Food"

Optimistic Outlook on U.S. Economic Conditions

Scott Bessent, U.S. Secretary of the Treasury, expressed confidence that tariff policies, which were put on hold by a U.S. Supreme Court ruling, could be restored to previous levels by early July. He also urged the Federal Reserve (Fed) to cut its benchmark interest rate, noting that, excluding energy and food, prices are actually declining.

Scott Bessent, U.S. Secretary of the Treasury, is speaking at the IIF event held in Washington D.C. on the 14th (local time). Photo by Reuters Yonhap News.

Secretary Bessent, speaking at an event hosted by The Wall Street Journal (WSJ) in Washington D.C. on the 14th (local time), referred to Section 301 of the Trade Act and said, "We could reimpose tariffs at previous levels as early as the beginning of July."

Section 301 of the Trade Act allows for actions such as imposing additional tariffs in response to unfair trade practices by other countries. Earlier this year, after the U.S. Supreme Court ruled President Trump’s retaliatory tariffs unlawful, the Trump Administration imposed a 10% tariff on various countries based on Section 122 of the Trade Act as a replacement. Moving forward, further tariffs could be imposed depending on the results of ongoing unfair trade practice investigations by the Office of the United States Trade Representative (USTR) under Section 301.

He gave a positive assessment of the U.S. economic situation. In particular, he described the downward revisions to global growth rates and inflation forecasts by the International Monetary Fund (IMF) and the World Bank as overreactions. On this day, the IMF lowered its projection for U.S. economic growth this year to 2.3%, citing a spike in energy prices triggered by the war involving Iran. This is 0.1 percentage point lower than the estimate released in January.

Secretary Bessent stated, "It is uncertain when the economic impact of the war involving Iran will be fully reflected, but the (U.S.) economy is currently solid," adding, "There is even a possibility that this year's growth rate could exceed 3 to 3.5%."

He also maintained that the Fed should lower its benchmark interest rate. At the Federal Open Market Committee (FOMC) meeting in March, the Fed kept its benchmark rate steady at 3.50–3.75%. However, Fed Chair Jerome Powell emphasized at a press conference that the current rate path remains 'conditional,' naming the war involving Iran as the greatest variable. The market interpreted this as a 'hawkish pause.'

Secretary Bessent argued, "The Fed’s assessment of inflation has been somewhat misguided," adding, "Since core inflation, excluding energy and food, is falling, there is room for a more substantial rate cut."

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