• Treasury Secretary Scott Bessent, a key architect of the administration's trade policy, has signaled that "substantial tariff news" will be unveiled in the coming days.
  • The announcement follows internal debate and a recent 90-day pause on certain tariffs targeting China, with Bessent having criticized a proposed 145% levy as "unsustainable.
  • Markets are bracing for volatility as the administration attempts to balance aggressive trade goals with inflation and recession risks.

Treasury Secretary Scott Bessent indicated that significant developments on U.S. tariff policy are imminent, telling reporters that the administration will announce "substantial tariff news" within the next couple of days. The statement, delivered after a closed-door meeting with economic advisors, signals a pivotal moment for the administration's trade agenda, which has been marked by internal divisions and intense international scrutiny.

Bessent, a former hedge fund manager with deep Wall Street experience, has emerged as a central figure in moderating the administration's more aggressive tariff proposals. According to people familiar with the matter, he recently negotiated the 90-day pause on tariffs targeting China and has been a vocal internal critic of a proposed 145% tariff on Chinese goods, which he has warned could amount to an "embargo" and prove "unsustainable" for the U.S. economy. His efforts reflect a push to shield the U.S. from both strategic foreign dependency and the inflationary risks of overly restrictive trade measures.

The impending announcement comes as the administration grapples with what Bessent has described as a "barbell economy"—strong at the top and bottom, but weak in the middle. Financial markets have been sensitive to tariff threats, with recent months seeing volatility as the U.S. imposed and then partially paused wide-ranging tariffs on global imports. The Treasury Secretary's comments suggest a carefully calibrated approach is being finalized, one that aims to pressure trading partners without triggering a full-scale trade war that could exacerbate inflation and hurt consumers.

Parallel to the tariff negotiations, Bessent has been involved in launching efforts to reduce U.S. reliance on key foreign imports, such as the recent opening of a rare earth processing plant in South Carolina. That initiative is part of a broader strategy to end China's "chokehold" on critical supply chains, a move that could have long-term implications for global manufacturing and defense industries. A spokesperson for the Treasury Department did not immediately respond to a request for further comment on the specifics of the upcoming tariff news.

Correction: An earlier version of this article misstated the duration of the recently negotiated tariff pause. It is a 90-day pause.