What Trump will do with customs, state spending and sanctions in Russia

The development of their economic power over its geopolitical enemies, he said yesterday (16.1.25) that he would support, his chosen for the Ministry of Finance, Scott Bessend. At the same time, Bessend defended the threats of the elected US president, Donald Trump for tariffs and advocated tax reductions and looser arrangements inside. CORVERSE The billionaire head of the hedge fund, who has been proposed by Trump to become the next US finance minister, yesterday revealed his most detailed plans on how the upcoming government will seek to reform the world’s largest economy. “We must ensure supply chains that are vulnerable to strategic competitors and we must carefully develop sanctions as part of an overall government approach to meet the requirements of our national security. And it is crucial, we must ensure that the US dollar remains the world reserve currency,” Bessend told a warm three-hour hearing to confirm his position. He said that the “most important economic issue of the day” was the renewal of tax reductions for individuals and businesses introduced by Trump in 2017, which will be the subject of a tough battle in Congress this year. Failure to extend cuts for citizens and businesses would cause “economic disaster” for the US, “and as always happens with economic instability, falls to the people of the middle and working classes.” But Bessend also made sharp comments on international economic policy, including an oath to support possible sanctions in the Russian oil sector in an attempt to intensify pressure on Moscow on the war in Ukraine. ADVERSION “If President Trump asks [this], and as part of his strategy to end the war in Ukraine, I will be 100% in line with the increase in sanctions, particularly against large Russian oil companies, at levels that will bring the Russian Federation to the negotiating table,” Bessend said. His comments pushed oil prices upwards, as the traders examined the prospect of closer global crude supply. The Brent international oil benchmark increased by more than $1 following Bessend’s comments to over $81 a barrel. The new government is also expected to target Iranian and Venezuelan oil with stricter sanctions, as Trump seeks to increase economic pressure on US opponents. American shares have increased since Trump won the November 5 election, while Wall Street has embraced his agenda, with the bosses of the world’s largest banks – who announced profits this week – stating that optimism about the new government’s economic plans has released “animal spirits”. However, major banks executives, speaking this week, also warned that Trump’s threats to impose sweeping duties could have inflationary consequences. Bessend used his examination by the Senate Finance Commission – which must approve his appointment before passing a full vote in the House – to defend these plans. Although he did not offer new details, Bessend said Trump would use customs to deal with unfair commercial practices, increase the revenues of the American government and conclude agreements with other countries. Bessend also said he would pressure China to buy more American agricultural products, such as corn and soy, under the terms of the purchase agreement that Trump negotiated with Beijing to ease trade tensions during the Republican leader’s first rule. Trump will continue to apply aggressive export controls to American products going to China, he said. “We should have a very strict control process for anything that could be used in artificial intelligence, quantum computing and surveillance, on chips,” Bessend said. “I’m worried because several times the United States Department of Finance was called upon to save the nation, whether it was the civil war, or the Great Depression, or the second world war, or the recent Covid epidemic,” Bessend said. He added that “with what we now have, we would have had difficulty doing the same”.