Since President Donald Trump unveiled his sweeping tariffs, Treasury Secretary Scott Bessent has been contacted by executives seeking his help in influencing Trump’s decision on the levies. As a former chief investment officer at Soros Fund Management, Bessent was seen as a potential ally who could explain the negative impacts of extreme tariffs on the economy and markets.
According to sources, Bessent wasn’t the main driver behind the tariff announcement. He provided scenarios for different tariff levels in Oval Office meetings. The actual shaping of the tariffs was done by a small group within Trump’s inner circle, with critical decisions made just before the announcement. The Treasury spokesperson declined to comment on the matter.
Trump’s plan to boost American products through tariffs conflicts with the Wall Street establishment that has long profited from international trade. The recent market turmoil, wiping out trillions in value, has sparked global recession fears. Private equity firms are calling off IPOs, hedge funds are hesitant to wager on the unpredictable future, and bank leaders are predicting a US recession this year.
Despite the market plunge, Trump remains committed to the tariffs, stating that the policy will continue. Within the administration, there is nervousness about the market fallout extending into the next session. Trump’s focus is on the long-term benefits of tariffs in reviving the US manufacturing base and reducing reliance on rivals.
Tariff Roll Out
Some Wall Street executives had appealed to Treasury Secretary before the tariff announcement, while others publicly criticized the plan. Bessent remains a key member of Trump’s economic team, although senior counselor Peter Navarro and Commerce Secretary Howard Lutnick played a significant role in tariff discussions. The US Trade Representative was also part of the team.
Dealmakers are concerned about the impact of tariffs on portfolio companies and stock prices. Private equity firms expected a boost under Trump’s administration but are now facing uncertainty. Some sectors may benefit, but prolonged uncertainty and market volatility pose challenges.
There are signs of pushback from Trump loyalists in Congress as well, with bipartisan bills proposed to bring back tariff power to Congress. Meanwhile, as the market reels from the turmoil, Trump won a golf championship in Florida over the weekend.
This story was originally featured on Fortune.com
