President Donald Trump's tariff plan already is working, as some U.S. trade partners "want to drop their tariffs," Treasury Secretary Scott Bessent said.
Trump announced 25% tariffs on imports from Canada and Mexico, and an additional 10% tariff on goods from China. The president also said he will impose reciprocal tariffs on all trade partners beginning April 2.
During a Sunday appearance on NBC's "Meet the Press," Bessent said some other countries are not waiting to react to Trump's tariffs.
"[G]oing into April 2 and already now, we've seen some of our most imbalanced trading partners come forward and want to drop their tariffs," Bessent said. "So, by President Trump pushing forward with a tariff plan, reciprocal tariffs, 'If you drop yours, we'll drop ours,' we are already seeing some of the worst offenders come down."
Bessent added that Americans should not necessarily expect U.S. trade partners to lower their tariffs immediately.
"April 2 is an important day. But I would also tell everyone to look what happens from April 2 to, say, June 30 as the other countries come down too," he said. "And President Trump's created a win-win situation here. Either the tariff barriers come down. The U.S. can export more. Trade is fairer. It's always been free, but not fair. And then we, or, if they don't do it, we'll take in substantial revenues."
Bessent also shot down the idea that tariffs are certain to drive up prices, at least in the short-term.
"Well, look, they don't have to because I believe especially with the China tariffs that China's manufacturers, they will eat the VAT [value-added tax], will eat the price or eat the tariffs," the secretary said.
"I believe that the currency adjusts. And I believe if we look during President Trump's first term, that the all the other things we do, if we're deregulating, if we're energy prices down, then, if we look across the spectrum, Americans will realize lower prices and better affordability."
Bessent said there are "no guarantees" there will not be a recession in the U.S., although there could be an adjustment. He did, however, rule out the chance of a financial crisis.