U.S. Treasury Secretary Scott Bessent on Thursday said Wall Street should shrug off President Donald Trump‘s latest threat to impose steep tariffs on foreign trading partners.
Asked on CNBC’s “Squawk on the Street” about Trump’s threat to ratchet up tariffs on European alcohol, Bessent suggested the move should have little impact on stocks.
“One or two items with one trading bloc, I’m not sure why that’s a big deal for the markets,” said Bessent.
Earlier in the day, Trump had warned the European Union that he would slap 200% tariffs on European alcohol exports — including all wines and French Champagnes — unless the bloc dropped its own proposed duties on American whiskeys.
Trump called the EU “one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States” in a Truth Social post threatening the 200% tariff.
On Wednesday, the EU unveiled a new plan to impose a 50% tariff on U.S. whiskey, beginning on April 1. The liquor tariff is part of a broader set of proposed import duties on American products.
The European tariffs were issued in retaliation for Trump’s 25% tariffs on all U.S. imports of steel and aluminum, which took effect Wednesday.
Bessent did not answer a question about whether Trump’s Thursday announcement was “premeditated,” or whether the Cabinet secretary was told about it in advance.
Major stock indexes continued to slide Thursday morning, deepening a weekslong sell-off fueled at least in part by fears and uncertainty surrounding Trump’s tariff-heavy economic agenda.
Read the original article here