Treasury Secretary Scott Bessent defended the Trump administration's approach to global trade talks on Tuesday, insisting that the stock market's recent plunge had nothing to do with ongoing tariff negotiations.
Speaking to CNBC, Bessent emphasized that while the administration remains open to trade talks, the decision to begin negotiations with Japan and other nations was not a market-calming tactic.
"It had nothing to do with the market," Bessent said, noting that 70 countries have contacted the White House to negotiate since President Trump announced sweeping reciprocal tariffs last week.
The tariffs, which are set to take effect Wednesday, triggered a wave of volatility on Wall Street, stoking recession fears and leading to a sharp three-day selloff.
Bessent reportedly urged Trump over the weekend to provide markets with a sense that there was an "end game" to the escalating trade measures. Trump responded Monday by announcing the start of negotiations—news that sent stocks soaring and futures up 3% early Tuesday, marking a rebound after days of losses.
"It's all President Trump's decision," Bessent said. "He had a view after 'Liberation Day' that we should go into quiet mode and let our partners think about the shock and awe that he presented."
Markets appeared to welcome the shift. Alongside US gains, Europe and Asia also climbed, while the dollar strengthened and oil rose above $60 per barrel.
Still, analysts warned that volatility will likely persist until the scope and substance of the trade talks become clear.
"We expect intraday volatility to continue, as this market tries to read the tea leaves," Bellwether Wealth President,Clark Bellin said, Axios reported.
Meanwhile, Bessent remains optimistic. "If they come to the table with solid proposals, I think we can end up with some good deals," he said.
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