The United States imposed tariffs on Canada and Mexico on Tuesday, March 4th, causing a sharp drop in the stock market. However, US Treasury Secretary Scott Bessent expressed confidence in President Trump’s broad plan to impose tariffs on foreign countries. He emphasized that the market sell-off is only temporary and Wall Street is not the government’s medium-term focus.
“We are focused on the medium term, on Main Street. Wall Street is doing great, and it can continue to do well, but we are concerned about small businesses and consumers,” Bessent said while appearing on Fox News’ “Fox & Friends” program on Tuesday.
“So we will rebalance the economy,” Bessent stated.
“Main Street” is often used to refer to traditional industrial economies and the general public outside of the Wall Street financial system.
Bessent believes that with tariffs taking effect this month and next, there will be a transitional period, but he believes the market sell-off is only temporary.
“I am very confident on the China tariffs. Chinese manufacturers will bear the cost of the tariffs, prices will not rise,” Bessent said. “Regarding Canada and Mexico, I think we are in a transitional period, as you mentioned, Honda moving to Indiana is a good start.”
On Tuesday, the US imposed a 25% tariff on all Mexican imports and most Canadian imports, while imposing a 10% tariff on Canadian energy products. Trump also doubled the tariffs on China, increasing them to 20%.
Furthermore, more US tariffs are in the pipeline: a 25% tariff on steel and aluminum imports will take effect next week. Trump also stated that he will impose additional tariffs at the same level on foreign imports of lumber, semiconductor chips, pharmaceuticals, copper, and automobiles starting from April 2nd.
On Monday, Trump also announced that tariffs will be imposed on all foreign agricultural products starting from April 2nd, but he did not disclose the extent of the tariffs.