Treasury Secretary Scott Bessent on Wednesday emphasized that the United States is not stepping back from international institutions and wants to collaborate with trading partners.
The remarks come after President Donald Trump levied historic tariffs against dozens of countries to rework global trade. The shift has spooked markets, and Bessent attempted to reassure economic allies that the U.S. wants to work with them.
“On this point, I wish to be clear: America First does not mean America alone,” Bessent said in an appearance at the Institute of International Finance. “To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.”
He said one goal of the Trump trade agenda is to reassert leadership in institutions like the International Monetary Fund and World Bank. Markets appeared to react well to his comments, with the S&P 500 rising after he spoke.
“Far from stepping back, America First seeks to expand U.S. leadership in international institutions like the IMF and World Bank,” Bessent said. “By embracing a stronger leadership role, America First seeks to restore fairness to the international economic system.”
Still, Bessent emphasized the need to fix trade imbalances and defended Trump’s trade agenda. He said that for decades, presidential administrations have relied on “faulty assumptions” that the policies of U.S. trading partners would drive a balanced global economy, but pointed out that big trade deficits persist.
Trump has said the goal of his aggressive tariffs is to realign trade imbalances and build out manufacturing in the U.S.
“Intentional policy choices by other countries have hollowed out America’s manufacturing sector and undermined our critical supply chains, putting our national and economic security at risk,” Bessent said. “President Trump has taken strong action to address these imbalances and the negative impacts they have on Americans. “
China has been the top target of Trump’s tariffs, sparking fears of a trade war. Bessent struck a conciliatory note Wednesday, saying that the U.S. wants to help China rebalance its economic model away from manufacturing exports and toward more domestic consumption.
“China needs to change. The country knows it needs to change. Everyone knows it needs to change. And we want to help it change — because we need rebalancing too,” Bessent said. “China can start by moving its economy away from export overcapacity, and toward supporting its own consumers and domestic demand. Such a shift would help with the global rebalancing that the world desperately needs.”
The remarks come a day after Bessent reportedly said in a private speech that a trade war with China is “not sustainable.”
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Trump also told reporters on Tuesday that he expects the high 145% tariffs on China will come down “substantially.”
“I think we’re going to live together very happily and ideally work together, so I think it’s going to work out very well,” Trump said.