Treasury Secretary Scott Bessent told lawmakers Tuesday that the U.S. economy is showing strong signs of resilience, with job gains outpacing expectations and inflation finally easing across key consumer categories, championing the Trump administration’s policy actions.
In testimony before the House Appropriations Committee, Bessent defended the Trump administration’s economic playbook, calling it a “three-legged stool” of trade, tax and deregulation designed to accelerate domestic investment and push wages higher.
“464,000 new jobs were added to the economy in the first 100 days,” he said.
“In April alone, over 177,000 American jobs were added, which is more than 40,000 than economists predicted,” he added.
Tariff Talks Accelerate, Trade Deals on Deck
When questioned on the administration’s international strategy, Bessent revealed that the U.S. is actively renegotiating tariffs with 17 of its 18 top trading partners a move that could yield significant progress in the coming months.
“I would be surprised if we don’t have more than 80 or 90 percent of those wrapped up by year-end,” Bessent said. “That may be much sooner… perhaps as early as this week.”
He said many countries have submitted “very good offers” in the wake of Trump’s sweeping tariff schedule announced April 2, which targeted all trading partners. A 90-day pause was introduced a week later to allow room for bilateral negotiations.
Bessent argued that tariffs are proving effective, not just economically but strategically. “They may not like the tariffs the president has put up, but they have them,” he said.
“We are aiming for fair trade to bring back high paying precision, manufacturing jobs to the U.S.,” Bessent said.
When Rep. Mark Pocan (D-WI) pressed Bessent on who ultimately pays for tariffs, the Treasury Secretary avoided a direct answer, saying “strategic uncertainty is part of negotiations.”
No Signs Of Recession, Stronger GDP Expected
Asked whether the U.S. economy is heading toward a recession, Bessent said the data show no such signal.
“There is nothing in the data that indicates the U.S. is in a recession,” he said, adding he expects first-quarter GDP figures to be revised higher.
He also said that tax receipts should remain strong, citing improvements in collection efficiency due to artificial intelligence.
Still, Bessent called for greater fiscal discipline. “Last year, we had a 6.7% fiscal deficit — the largest ever during peacetime or non-recessionary times. The easy thing would be to keep spending to keep the economy running. But that path is unsustainable.”
“We have set the table for a robust economy that allows Main Street to grow,” Bessent added.
Push For Permanent Tax Cuts Gains Momentum
Bessent reiterated that the Trump administration’s next priority is to make its tax cuts permanent. With House Speaker Mike Johnson expected to send a bill to the Senate by Memorial Day, Bessent said momentum is building.
“We look forward to working closely with the members of this committee to pass this bill into law,” he said. “Together, we can build a stronger, safer and more prosperous America.”
Market Reactions
The S&P 500 index, tracked by the SPDR S&P 500 ETF Trust SPY, pared losses during Bessent’s testimony, rising 30 points or 0.6% between 10:00 and 11:00 a.m. ET.
The Nasdaq 100 also moved off session lows, climbing 150 points or 0.8% in the same period, narrowing its decline to 0.7%.
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