Strategic Uncertainty: Trump’s Trade Negotiation Tool

US Treasury Secretary Scott Bessent discussed economic uncertainty in relation to Trump's trade negotiations. Bessent suggested this uncertainty is a deliberate tactic to grant leverage in tariff discussions. He reassured that while uncertainty is useful, impending trade deals will eventually bring clarity and certainty in the markets.

Scott Bessent, the US Treasury Secretary, has described the economic turbulence affecting global financial markets as a strategic tool utilized by President Trump in trade negotiations.

Speaking at the White House, Bessent referred to the current ambiguity as 'strategic uncertainty' designed to aid Trump's discussions on tariffs and trade agreements.

Despite concerns about market volatility, Bessent indicated that future announcements of trade deals will lessen uncertainty, though he noted that some level of uncertainty can be advantageous in negotiations. He advised trusting in President Trump's strategy.

(With inputs from agencies.)