Treasury Secretary Bessent Spars with CBS Anchor Over Tariff Impact Amid Falling Inflation
Treasury Secretary Scott Bessent pushed back against economic concerns over President Donald Trump’s tariffs during a tense exchange with CBS Face the Nation host Margaret Brennan. The confrontation came as inflation hit a four-year low, casting doubt on earlier warnings that tariffs would significantly raise consumer prices.
Brennan questioned Bessent about the potential fallout from Trump’s renewed tariffs on imported goods, particularly from China, Mexico, and Canada. In March, Brennan cited economic forecasts predicting higher prices for American consumers — a concern she repeated in Sunday’s interview.
“When you go back-to-school shopping, things are going to cost more,” Brennan said, pointing to anticipated price hikes from major retailers like Walmart and Target.
But Bessent dismissed those concerns as “alarmist,” noting that the inflation rate had dropped to 2.3% in April, according to the Bureau of Labor Statistics — the lowest since early 2021.
“Margaret, when we were here in March, you said there was going to be big inflation. There hasn’t been any inflation,” Bessent said. “Actually, the inflation numbers are the best in four years. So why don’t we stop trying to say this could happen and wait and see what does happen?”
While Brennan cited a recent Wall Street Journal column by Republican strategist Karl Rove warning that tariff-related costs would hurt large retailers’ profit margins and ultimately consumers, Bessent countered by pointing to statements from other businesses.
“Home Depot has said they aren’t planning to raise prices because of the tariffs,” he argued.
The debate intensified when Brennan referenced a 2025 study by the Peterson Institute, which estimated that tariffs of 10% on Chinese goods and 25% on imports from Canada and Mexico could cost U.S. households an additional $1,200 annually.
Bessent maintained that such projections had not materialized, emphasizing the strength of current economic indicators.
The segment followed a string of earlier disputes between Brennan and Trump officials over the administration’s economic strategy. In April, Brennan pressed Commerce Secretary Howard Lutnick about whether artificial intelligence was used to craft Trump’s “Liberation Day” tariff policy.
Meanwhile, Trump’s tariff agenda is facing mounting legal scrutiny. Last week, the U.S. Court of International Trade ruled that the former president had exceeded his authority under the International Emergency Economic Powers Act (IEEPA) in imposing tariffs on dozens of countries. However, the policy was temporarily reinstated after a federal appeals court issued a stay on Thursday, allowing the tariffs to remain in place while litigation continues.
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