Trump's three-legged stool strategy begins! US Treasury Secretary Bessent: Don't just care about tariffs, there are also tax cuts and deregulation waiting for you.

U.S. Treasury Secretary Scott Bessent discussed Argentina's economic aid, global trade, the U.S. bond market, and the dollar's trend during an interview on April 15. Bessent revealed that since the initiation of the 90-day tariff protocol, preliminary negotiations have begun with countries such as Vietnam, Japan, South Korea, and Spain. At the same time, he also expressed concerns about the risk of economic depeg between China and the U.S., stating that the relationship between the senior officials of both sides remains cordial, but real negotiations must still start from Trump and Xi Jinping.

Support Argentina's policy reform, joining hands with the IMF and World Bank for rescue.

Bessent was the first to indicate that the visit to Argentina was to support President Javier Milei's three major reforms, namely fiscal austerity, currency reform, and exchange rate adjustment. It further pointed out:

The International Monetary Fund (IMF) will invest 20 billion USD for assistance.

World Bank (WB) is preparing to invest 12 billion USD in support.

He admitted that the United States would not open another dollar credit line for Argentina. As the policy continues, Argentina is expected to repay the 18 billion yuan currency swap protocol with China, of which 5 billion has been utilized (.

90 days countdown to trade negotiations, urging countries that talk first wins

Bessent emphasized that since the initiation of the 90-day tariff suspension protocol, the United States is currently in preliminary negotiations with these countries.

Vietnam

Japan

South Korea

Spain

He said that the first wave of negotiations will see who takes the lead and who is likely to get the best terms. More directly to Japan: "Don't delay time, please come and talk quickly." He also revealed that this negotiation is more difficult to deal with:

non-tariff barriers

currency operation

subsidy system

The U.S. Trade Representative )USTR( has also prepared historical data for support.

Latin American policy equals countering China, and the U.S. does not want Latin America to follow in Africa's footsteps.

When faced with the host's question about why the Trump administration is focusing on Latin America, Bessent responded that this is, to some extent, related to China's policy. He criticized:

China signs opaque, debt-laden aid protocol in Africa

Do not want Latin America to become the next victim zone.

He also pointed out that China's currency swap protocol with Argentina is deliberately designed to make future generations poorer, and the United States hopes to enable Argentina to escape its predicament through reforms.

The decoupling between China and the US is possible but not inevitable; the key still lies with Trump and Xi Jinping.

When asked about China's claim that the U.S. tariffs are like a joke, Bessent responded: "These numbers are not funny at all; this is a serious matter." He believes that whether economic depeg will occur in the future depends on China's reaction, and emphasized that the high-level relations between the U.S. and China remain cordial, but the real negotiations will start with Trump and Xi Jinping.

He also pointed out that China's manufacturing capacity will not stop because of the U.S. defense measures; they will still find places to sell their products, which could be.

Europe specializing in high value-added products

Sell cheap goods and small items to the Global South ) South Asia, Africa, etc. (

Don't worry about the volatility in the bond market, it's just short-term players self-destructing.

Regarding the volatility of U.S. Treasury yields and the weakening of the dollar, Bessent believes it is due to a failure in the market's short-term risk control model )VAR shock(. He pointed out

Recently, the demand for 10-year and 30-year U.S. Treasuries at auction remains quite strong from foreign investors.

I haven't seen sovereign funds selling off significantly.

Therefore, it is possible that hedge funds have taken on too much leverage, leading to severe volatility. Bessent emphasized that the U.S. dollar remains the global reserve currency, and the United States still has a strong dollar policy; volatility does not equate to a loss of confidence.

Stay in close contact with the Federal Reserve and coordinate more with the OCC and FDIC.

Bessent downplayed market concerns, stating that she has breakfast every week with Federal Reserve )Fed( Chairman Jerome Powell )Jerome Powell(, and that there is currently no need to activate the "Break-The-Glass" financial stability plan.

He said: "We have a whole set of tools available, such as increasing buybacks and enhancing repurchase operations, but we don't need them right now."

Bessent also indicated that the Trump administration respects the independence of the Federal Reserve, but in the future, there may be more room for coordination with the OCC and FDIC regarding regulatory policies.

The three-legged stool strategy has been initiated, with tax cuts and regulatory easing set to take the stage.

Bessent emphasized that the United States' "three-legged stool" strategy has been launched, and the next steps will involve tax reduction measures and easing regulatory processes.

He emphasized that the key point ignored by the media is the "high unity of the Republican Party." Trump has reached a consensus with House Speaker Mike Johnson, Senate Leader Thune, and the tax committee, not just to simply extend Trump's tax law )TCJA(, but also to add new measures.

He addressed the market: "Don't just focus on tariffs, there are also tax cuts and deregulation waiting for you."

This article discusses Trump’s three-legged stool strategy! US Treasury Secretary Bessent: Don’t just care about tariffs, there are also tax cuts and deregulation waiting for you. First appeared in Chain News ABMedia.