[By Guancha Observer Network, Wang Kaiwen] After US President Donald Trump announced the so-called "reciprocal tariff" on April 2nd, the US stock market suffered its largest single-day drop since 2020. People from all walks of life in the United States are worried that the new tariff measures will trigger global retaliation, push up prices and hinder the US economy.

American Treasury Secretary Scott Beeton tried to defend Trump's tariffs. In an interview with NBC on the 6th, he denied that tariffs would lead to a US economic recession and said that the sharp fall in stocks was a "short-term" market reaction, adding that the goal of the Trump administration was to "build a long-term foundation for prosperity."

He also claimed that more than 50 countries have contacted the United States regarding the tariff issue, and that Trump "has created the greatest negotiating leverage."

In the last two trading days of last week, the US stock market lost over $6 trillion, setting a new record. The violent fluctuations in the capital market have caused Americans to worry about the shrinkage of their retirement accounts, especially those approaching retirement. In response, Beeton said: "Those Americans who want to retire now, those Americans who have been saving money in their savings accounts for years, I think they won't pay attention to daily fluctuations."

He said that most Americans do not put all their wealth in the stock market, "people have a long-term perspective... The stock market is considered a good investment because it is a long-term investment. If you look at it day by day or week by week, the risk will be very high. From a long-term perspective, this is a very good investment."

Beeton also said that he was not worried about the negative market reaction to Trump's tariffs, "Who knows how the market will react in one day or one week? We focus on building a long-term foundation for prosperity, and I believe that the previous administration has led us to financial disaster."

Treasury Secretary Scott Beeton Video screenshot

Aside from downplaying the impact of the stock market downturn, Beeton also said that according to the US employment data released on April 4th, US employment growth was stronger than expected, and there was "no reason" to expect the tariff measures to lead to a recession.

"I don't think we have any reason to factor in a recession," Beeton said. "You never know how the market will react. We often encounter such short-term market reactions."

Beeton also said that Trump "has created the biggest chips for himself", and since the announcement of the new tariff measures on April 2nd, more than 50 countries have contacted the United States regarding the tariff issue, hoping to conduct trade negotiations. However, he did not reveal which countries were negotiating with the United States or what the details of the negotiations were, "We must see what suggestions these countries can propose and whether these suggestions are credible."

Reuters pointed out that simultaneously negotiating with multiple countries may bring logistical coordination challenges to the Trump administration and prolong economic uncertainty.

Previously, economists from JPMorgan warned that Trump's announced tariff measures could lead to a US economic recession, with this year's GDP expected to decrease by 0.3%, lower than the earlier estimated growth of 1.3%; the unemployment rate is expected to rise from the current 4.2% to 5.3%.

After the Trump administration escalated the tariff war, China quickly retaliated by announcing that starting April 10th, it would impose a 34% tariff on all American products and restrict the export of certain rare earth materials including samarium and gadolinium.

America's CNBC reported that after China took countermeasures against Trump's tariff policy, people became increasingly concerned that the trade war would lead to a global economic recession.

When asked how long Americans would "persevere" in economic uncertainty, Beeton said that the Trump administration would "persevere" in imposing tariffs and reduce inflation, but did not specify how long this would take.

It is worth noting that Beeton has recently been embroiled in rumors of "resignation." On April 4th, MSNBC host Stephanie Lule revealed that Beeton intended to resign due to his inability to endure the "absurd (reciprocal) tariff algorithm" in the Trump administration. "In the past few days, he has really damaged his credibility and resume in the market." Lule said.

Bloomberg reported on the 6th that in recent days, several hedge fund managers and financial executives have contacted Beeton in hopes of persuading Trump on the issue of additional tariffs, explaining to him that the new tariffs would harm the economy and cause severe damage to the market. However, this seemed not to deter Trump's decision.

According to sources, Beeton remains an important member of Trump's economic team, but White House Trade and Manufacturing Senior Advisor Peter Navarro and Commerce Secretary Howard Lutnik are mainly responsible for the tariff issues.

While the US stock market was "bleeding," Trump, as usual, went to play golf at Mar-a-Lago in Florida. On the 6th, he also posted a video of his swing on his self-created social platform "Truth Social" (True Social).

"He is destroying our economy," criticized Democratic Senator Adam Schiff from California on the 6th. "I think people have seen their retirement savings go up in smoke, while he appears on the golf course. This may eventually become the most enduring image of Trump's presidency."

This article is an exclusive contribution by the Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7490418048986300965/

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