U.S. Investment Boosted by Trump’s Tariff and Tax Cut Strategy

The U.S. Treasury Secretary, Scott Bessent, stated on Monday that President Donald Trump's proposal of tariffs, tax cuts, and deregulation represents a strategy that will benefit long-term investment in the American economy.

He emphasized that the country's financial markets are "antifragile" and will withstand any short-term turbulence. In his prepared remarks for the Milken Institute Global Conference in Los Angeles, Bessent defended Trump’s implemented tariffs without reservation and highlighted the importance of the Republican tax legislation currently in Congress, which would make several of the tax reductions adopted during Trump's first term permanent, including a special deduction for small businesses. "The key elements of Trump’s economic strategy—trade, tax cuts, and deregulation—are not isolated policies. They are part of the same engine designed to promote long-term investment in the U.S. economy," Bessent stated. On April 27, Scott Bessent defended Trump's controversial tariff policy as a way to create "strategic uncertainty" that benefits Washington. In his second term, Trump has set a 10% tariff on most of his trading partners and an additional 145% tax on various products from China. In response, Beijing has implemented a 125% tariff on American goods. Numerous countries face a 90-day deadline, ending in July, to reach an agreement with Washington and avoid individualized higher tariffs. According to information from Reuters and AFP.

It’s interesting to note how these tariff policies can have both positive and negative effects. While they may encourage long-term investment, they also create uncertainty in trade relations and can deter international commerce. In such an interconnected world, it's crucial to consider all repercussions before implementing drastic changes in economic policy. The Mexican economy, like many others, is tied to these movements and must stay alert to the opportunities and risks that arise.