Bessent says Trump won’t be deterred by stock drops

Treasury Secretary Scott Bessent reaffirmed on Wednesday that the U.S. will not alter its trade negotiation approach with China in response to stock market fluctuations.

Speaking exclusively at CNBC’s Invest in America Forum, Bessent stated, “We will not let the stock market dictate our negotiation strategy or prevent us from implementing robust measures against Beijing. Our decisions are based on what is economically advantageous for the U.S.”

He also refuted a report published by The Wall Street Journal claiming that Chinese President Xi Jinping is banking on the U.S. economy’s inability to withstand a prolonged trade dispute with China.

Bessent criticized the report as “misleading” and accused the publication of being influenced by the Chinese Communist Party.

These remarks come amidst volatile market conditions, with uncertainty surrounding trade discussions between the two nations.

Last Friday, stocks plummeted following President Trump’s threat to increase tariffs on Chinese goods in response to China’s restrictions on rare earth minerals exports.

Although Trump adopted a more conciliatory stance over the weekend, market fluctuations persisted. The S&P 500 experienced turbulence on Tuesday, particularly after Trump issued another trade ultimatum to China, accusing them of economic hostility for not purchasing U.S. soybeans.

Bessent emphasized that President Trump values a thriving stock market, attributing its success to favorable policies. He highlighted the current surge in capital expenditures, particularly in areas like artificial intelligence.

Stay tuned for further updates as this story develops.