This episode explores the impact of President Trump's economic policies, specifically his tariff strategies, on the US economy. Against the backdrop of declining approval ratings on the economy, Treasury Secretary Scott Bessent argues that consumer spending indicates a healthier economic picture than polls suggest. More significantly, the discussion pivots to President Trump's claim of 200 tariff deals, which Bessent clarifies as sub-deals within ongoing negotiations with various countries. Bessent defends the administration's approach as "strategic uncertainty" in game theory, aiming to leverage high tariffs to secure concessions from trading partners, particularly citing progress with Asian countries. However, concerns are raised about the impact on small businesses, with examples of inventory losses and uncertainty about future policies. In contrast, Bessent emphasizes the long-term goal of creating high-performance manufacturing jobs and the unsustainable nature of China's current business model, suggesting that China will eventually negotiate due to economic pressures. Finally, the Secretary downplays concerns about recent market volatility, asserting that the US government bond market remains the safest and soundest globally.
