Trump’s economy is one big power play, not just the pieces, Bessent says urging investor patience

Treasury Secretary Scott Bessent told investors Monday that President Trump’s economic agenda is “more than the sum of its parts,” pointing to deregulation and tax cuts as companions to the White House tariff plan that is making Wall Street anxious.

Speaking at the Milken Institute, Mr. Bessent said Americans will “harvest” the benefits of the intertwined policies.

“The primary components of the Trump economic agenda — trade, tax cuts and deregulation — are not stand-alone policies,” Mr. Bessent said. “They are interlocking parts of an engine designed to drive long-term investment in the American economy.”

Mr. Bessent addressed the think tank, which focuses on global challenges in health, finance and other matters, as investors looked for progress on trade.

The U.S. and China are locked in a trade war featuring sky-high tariffs that are likely unsustainable for either side. The White House has not announced any trade deals with countries hoping to negotiate down Mr. Trump’s April 2 “Liberation Day” tariffs, which were paused for 90 days.

Wall Street took a downturn on Monday as investors awaited progress. The Dow Jones Industrial Average slid nearly 100 points, or 0.2%, and the S&P 500 and Nasdaq closed down 0.6% and 0.7%, respectively.

The tariff plan has sparked fears of empty shelves, higher prices and slower economic growth, but Mr. Bessent said it is critical to building an economic foundation in America.

“Tariffs are engineered to encourage companies like yours to invest directly in the United States. Hire your workers here. Build your factories here. Make your products here,” he said. “You’ll be glad you did, not only because we have the most productive workforce in the world but because we will soon have the most favorable tax and regulatory environment as well.”

Mr. Trump is flexing unilateral powers to impose sweeping tariffs, including a blanket 10% levy on all imports.

Other aspects of his agenda rely on Congress. Republican majorities in the House and Senate are working on a “big, beautiful bill,” as Mr. Trump calls it, to implement the White House tax and spending plans.

Republicans are working through several sticking points, including whether the legislation will make deep cuts to Medicaid coverage for the poor.

Looking abroad, Mr. Trump is scheduled to meet with newly elected Canadian Prime Minister Mark Carney on Tuesday. Trade will likely be front and center as Canada contends with Mr. Trump’s tariffs on steel, aluminum and vehicles and a 25% tariff on goods outside the U.S.-Mexico-Canada Agreement.

“I guess he wants to make a deal. Everybody does,” Mr. Trump said of Mr. Carney’s agenda.

Mr. Trump said China wants to negotiate a deal to lower sky-high tariffs so its export-heavy economy won’t be “decimated.”

Mr. Bessent, urging patience, compared the emerging economic plan to high-potential farmland.

“We have uprooted government waste and harmful regulations. We have planted the seeds of private investment. And we have fertilized the ground with fresh tax legislation,” Mr. Bessent said. “Next, we harvest. And we want you to harvest with us.”

Mr. Bessent reassured investors one day after Mr. Trump spooked Wall Street again with a fresh threat of tariffs.

This time, the administration targeted the movie industry, saying too many foreign nations are undercutting American film workers with large incentives.

“I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!” he wrote.

California Gov. Gavin Newsom, a Democrat, has pushed to increase funding for the state’s tax incentive program, hoping to lure back filmmaking.

On Monday, Mr. Trump said the governor’s “incompetence” caused the industry to stray from the U.S.

“He’s just allowed it to be taken away from Hollywood,” Mr. Trump said during an unrelated event in the Oval Office. “Hollywood doesn’t do very much of that business. They have the nice sign, and everything’s good, but they don’t do very much.”

Mr. Trump said he would check with film executives to ensure they liked the tariff idea.

“I’m not looking to hurt the industry. I want to help the industry,” ​he said.

Mr. Bessent said the administration will make the transition to U.S. production easier for all industries. He pointed to efforts to let companies write off 100% of new factory production.

“We have the world’s reserve currency, the deepest and most liquid markets, and the strongest property rights,” the secretary said. “For these reasons, the United States is the premier destination for international capital. And the administration’s goal is to make it even more appealing for investors like you.”