Global Market Update: Chart Course or Watch Burning: Treasury Secretary Scott Bessent Warns Donald Trump

Treasury Secretary Scott Bessent called on U.S. President Donald Trump to clarify his goal to investors about his ultimate intention toward new tariffs or stock markets, according to a report.

Scott Bessent’s warning

Bessent has reportedly suggested that the U.S. president ease his tough trade war by adding achievable measurable goals.
According to Politico’s source, “Bessent’s point is, ‘Unless you transfer, the market will keep melting.” The source also mentioned that Bessent said, “You have to talk about what the negotiation and what the final game is,” as quoted in the report.
Since Trump took office, the benchmark S&P 500 has fallen 16%, removing more than $3 trillion in value from the stock market as investors fear a global trade war could damage the economy, which is based on wealth. According to Fortune, the market sell-off was the worst 10-week start for the new president when the internet bubble burst, Fortune reported.

Amazing tariff application

According to the report, one of the reasons for the sharp decline in the stock market due to the astonishing application for tariffs. According to Fortune, Wall Street was surprised on Liberation Day because the U.S. president did not disclose that he would impose such high comprehensive tariffs even on small territories.

“The market was captured sleepwalking,” UBS chief strategist Bhanu Baweja claimed.

Markets misunderstood Donald Trump’s strategy

Baweja claims that investors mistakenly expect Trump to try to negotiate a series of deals only with tariffs as reliable leverage, as he did with the NAFTA’s USMCA five years ago, rather than reportedly a tool of ideological hope in itself.
He also mentioned that “tariffs are also much higher than expected, with effective tariffs soaring 10 times,” he added, “these are numbers we have never seen since the 1900s”, as stated in the report.
Investors were also shocked as the Trump administration based on new import tariffs based on trade imbalances that have nothing to do with tariff reciprocity.

FAQ

What does Scott Bessent suggest Trump to do?
He advised Trump to clarify his tariff targets to avoid further market turmoil.

Why is the market reacting so strongly?
The market responded due to the lack of clarity on long-term tariff targets and surprise applications.