'Tariffs Are A Means To An End': Bessent Defends Trade Strategy, Pushes Growth Plan

Treasury Secretary Scott Bessent doubled down on Donald Trump‘s administration policy priorities, laying down a bold economic roadmap focused on lowering government spending, cutting regulations, and driving private-sector-led growth.

In a Wednesday interview with Fox Business, Bessent indicated that the new administration is prioritizing fiscal discipline and economic expansion.

"The U.S. doesn't have a revenue problem—it has a spending problem," he said, adding that the plan is to "reprivatize the economy" by shifting growth away from government-driven stimulus toward private-sector investment.

"Spending has gone out of control in Washington," he said, indicating that fiscal responsibility and pro-business policies will drive sustainable expansion.

Lower Yields and Trump's Focus on the 10-Year Treasury

With markets watching the Federal Reserve's next moves, Bessent stressed the importance of bond yields and long-term interest rates.

"He and I are focused on the 10-year Treasury," he said, referring to Trump's stance on borrowing costs.

The 10-year Treasury yield, a key benchmark for everything from mortgage rates to corporate borrowing, has risen since the Federal Reserve started to cut interest rates in September last year.

“They did a jumbo rate cut and the 10-year rate went up,” he said.

Bessent indicates that long-term yields can come down—not through Fed intervention, but by cutting spending, lowering energy prices, and signaling fiscal responsibility to investors.

On Wednesday, yields on the 10-year Treasury tumbled by 10 basis points following Bessent’s remarks. The U.S. 10-Year Treasury Note ETF UTEN rose 0.7%.

Spending Cuts And The 3-3-3 Plan: Can It Work?

Bessent is pushing what he calls the “3-3-3” economic strategy:

Getting the deficit-to-GDP ratio down to 3%-3.5% by the end of Trump's term.
Driving GDP growth beyond 3% through deregulation and investment.
Increasing U.S. energy production by 3 million barrels per day to strengthen economic security.

"We can create 3% plus economic growth, non-inflationary economic growth," he said, highlighting energy independence as a key driver.

"We produced 3 million more energy equivalents under Trump's first term," he told Fox Business.

Tariffs As ‘Means To An End’

On trade policy, Bessent indicated that tariffs could be a tool to bring manufacturing back to the U.S., as they should function as a temporary measure to incentivize reshoring.

He highlighted recent trade actions, including threats of tariffs on Mexico and Canada over immigration policies and fentanyl-related concerns, saying, "The president threatened tariffs, and the president of Mexico offered 10,000 troops at the southern border."

He added that tariffs on China are also under consideration due to the fentanyl crisis, emphasizing that they are "not a revenue issue right now" but a strategic tool to restore economic security.

"Tariffs are a means to an end," he said. "In theory, they would be a shrinking ice cube—you impose them, production comes back to the U.S., income tax revenue rises, and tariffs decline."

Elon Musk, Dogecoin, And Treasury's Efficiency Overhaul

Bessent hinted that Elon Musk and DOGE could play a role in Treasury's modernization efforts.

"Elon Musk is the greatest entrepreneur of this generation," he said, adding that the administration is working with Musk on government efficiency reforms.

“DOGE is not going to fail,” he added, referencing past government efficiency initiatives that fell short, including efforts by the Reagan and Clinton administrations.

Bessent highlighted ongoing efforts to improve payment processing and accountability. "At the Treasury, our payment system processes 13 billion payments a year. We're studying how to enhance accountability, accuracy, and traceability," he said.

Yet, he clarified that Treasury is not directly involved in decisions to halt payments, saying that "such actions happen upstream at the department level."