Scott Bessent on US Treasury’s Capacity for Tariff Reimbursements
Scott Bessent asserts that the US Treasury holds adequate reserves—$774 billion in cash—to manage potential tariff refunds, though such repayments WOULD likely be staggered over weeks or even a year. A wholesale reversal of tariffs remains improbable, in his view, as businesses like Costco—currently litigating against the government—would face operational complexities in returning funds to consumers.
Bessent emphasizes that most companies absorbed tariff costs rather than passing them to customers, contradicting inflation concerns tied to Trump-era trade policies. Goods inflation, he notes, consistently trailed broader inflationary trends. A murky court ruling could further complicate reimbursement eligibility assessments, echoing Morgan Stanley's earlier warnings about judicial ambiguity.
