Scott Bessent Soothes Market Jitters Amid Trump Tariff Plans

Scott Bessent, the United States Treasury Secretary, sought to calm financial markets on Monday following President Trump’s announcement of a controversial 100 per cent tariff on foreign-produced films. Speaking at the Milken Institute Global Conference in Beverly Hills, Los Angeles, Bessent reassured investors about the resilience of the American economy and its appeal as a hub for international capital.

Bessent highlighted America’s historical ability to recover from economic setbacks, mentioning examples such as the Great Depression, the Second World War, and the Covid pandemic. He described the nation as “unstoppable,” reinforcing the strength of its economic fundamentals and its attractiveness to global investors. Addressing an audience that included Citadel’s CEO Ken Griffin and Citigroup’s Jane Fraser, Bessent stated, “The American economy is anti-fragile and remains the premier destination for international capital.”

The proposed 100 per cent tariff on foreign films, announced by Trump over the weekend, has prompted significant concern among financial experts. While details of the policy remain unclear, the prospect of prolonged trade disputes has unsettled the markets. Shares in Netflix, which operates international production facilities including in the UK, dropped 1.9 per cent to $1,134.06. Imax Corporation also saw its shares decline by 2.1 per cent to $24.34 on the same day.

Market analysts and corporate leaders expressed reservations over potential impacts of this tariff strategy. Citigroup’s Jane Fraser remarked, “Most companies are stuck in an uncertain environment. Decisions on capital expenditure and hiring are being delayed, which could directly affect economic demand over time.” Apollo Global Management’s CEO, Marc Rowan, cautioned that these trade wars were damaging the global perception of the US as a stable and predictable partner for business.

Adding to the market turbulence, Warren Buffett, CEO of Berkshire Hathaway, announced that he would step down at the end of the year, handing the reins to Greg Abel, the company’s Vice-Chairman. Despite Buffett’s decision to remain as Chairman of the Board, the succession news triggered a sharp fall in Berkshire’s stock value. Its Class A shares dropped by 4.9 per cent to $769,960, and its Class B shares fell by 5.1 per cent to $512.15.

Oil markets were also affected on Monday, with Brent crude futures down by 2.51 per cent to $59.75 a barrel. The decline followed OPEC+’s decision to accelerate production increases, creating expectations of higher supply amid a murky demand outlook.

Although Bessent’s remarks provided some relief to Wall Street, uncertainty surrounding tariffs and global policy changes continues to weigh on investor sentiment. The broader implications of these developments will likely remain a key focus for financial markets in the near future.