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The Treasury secretary urged executives and entrepreneurs to look beyond the Trump administration’s trade agenda.
Alan Rappeport covers the Treasury Department. He reported from the Milken Institute Global Conference in Los Angeles.
May 5, 2025Updated 11:53 a.m. ET
Treasury Secretary Scott Bessent urged skittish global business leaders on Monday to ignore President Trump’s economic naysayers and ramp up investment in the United States, defending an economic agenda that economists warn will slow economic growth and exacerbate inflation.
Speaking to executives, entrepreneurs and policymakers, Mr. Bessent argued that the Trump administration’s economic plans go beyond trade policy and will pay off in the long run. He urged them to also focus on Mr. Trump’s plans to cut taxes and regulation, which he said would spur job creation and output.
“Tariffs are engineered to encourage companies like yours to invest directly in the United States,” Mr. Bessent said in remarks at the Milken Institute Global Conference in Los Angeles. “You’ll be glad you did — not only because we have the most productive work force in the world. But because we will soon have the most favorable tax and regulatory environment as well.”
His comments came just hours after Mr. Trump ordered up new tariffs on foreign film producers, a decision that left many in Hollywood puzzled about how such a tax would work.
The Treasury secretary has been working to ease concerns among investors that Mr. Trump’s trade plans will destabilize the global economy. Last month the president levied tariffs on countries around the world and escalated a trade fight with China, which sent financial markets plunging.
Since then, Mr. Bessent has been racing to negotiate trade deals with dozens of countries. He has also signaled that the China tariffs are not sustainable, offering hope that Mr. Trump would soon begin negotiations to lower them.
“Our goal with trade policy is to level the playing field for our great American workers and companies,” Mr. Bessent said.
The Trump administration is working closely with congressional Republicans on tax legislation that would extend the 2017 tax cuts and offer new tax breaks for overtime pay, tips and Social Security benefits. Mr. Bessent made the case on Monday that investors need to consider the broader agenda when thinking about where to park their money.
Describing Mr. Trump’s policies as “mutually reinforcing,” Mr. Bessent said, “Acting in concert, they push toward the same goal — to solidify our position as the home of global capital.”
Investors have grown increasingly wary of Mr. Trump’s policies in recent months, with stocks, bonds and the dollar all showing signs of weakness as fund managers fret over the uncertainty surrounding Mr. Trump’s policymaking approach.
The International Monetary Fund projected last month that global output would slow to 2.8 percent this year from 3.3 percent in 2024 and sharply downgraded its outlook for the U.S. economy.
On Monday, Mr. Bessent said Mr. Trump would prove “critics in establishment circles” wrong.
“We have the world’s reserve currency, the deepest and most liquid markets, and the strongest property rights,” Mr. Bessent said. “For these reasons, the United States is the premier destination for international capital.”
Alan Rappeport is an economic policy reporter for The Times, based in Washington. He covers the Treasury Department and writes about taxes, trade and fiscal matters.
