Trump's Economic Advisor Marginalized in 'Tariff War'?…Rumors of Resignation Emerge

Besant, US Treasury, Not Considered Key in Tariff Policy Formation

After the announcement of the Trump administration's extensive reciprocal tariff plans, it was reported by Bloomberg on the 5th (local time), citing sources familiar with the matter, that senior executives of Wall Street financial firms requested Treasury Secretary Scott Besant to actively persuade President Trump.

However, the report stated that Wall Street was shocked as evaluations emerged that Secretary Besant was not a key figure in the formation of tariff policies.

According to the report, after President Trump announced the imposition of reciprocal tariffs and the financial markets fell into extreme panic for three days, it was reported that Secretary Besant's mobile phone was flooded with text messages from hedge fund and financial company executives on Wall Street.

They were reportedly asking for help in persuading President Trump regarding the tariff issue.

Secretary Besant is a figure who served as the Chief Investment Officer (CIO) of a fund operated by George Soros and founded the hedge fund 'Key Square Group'.

He has been evaluated by Wall Street as someone who can effectively convey concerns to President Trump that extreme tariff imposition could harm the economy and cause market turmoil.

However, it turned out that Secretary Besant was not a major driver of policy in the process of forming the reciprocal tariff policy.

According to sources, Secretary Besant's role was limited to analyzing and explaining potential scenarios of how various levels of tariffs could impact the market and economy.

Even before the tariff announcement, major figures on Wall Street publicly voiced criticism, and some unofficially sought help from Secretary Besant, but these requests reportedly did not influence the final policy decision.

While Secretary Besant remained on the periphery of tariff policy decisions, it was identified that White House Trade and Manufacturing Advisor Peter Navarro and Commerce Secretary Howard Lutnick played the role of President Trump's key 'tariff advisors'.

Meanwhile, reports emerged that Secretary Besant is considering resignation.

The American current affairs magazine 'New Republic' quoted MSNBC host Stephanie Ruhle's remarks, reporting that Secretary Besant is considering leaving the Trump administration following the announcement of reciprocal tariffs that shocked the economy.

There was also an analysis that Secretary Besant, isolated in the process of forming the Trump administration's economic policy, is seeking an exit to restore market confidence, such as through the Federal Reserve (Fed).

Wall Street magnates have consistently expressed concerns that President Trump's tariff policy will shock the economy.

Previously, Ken Griffin, founder of the hedge fund Citadel, repeatedly criticized that tariffs would undermine America's competitiveness, and Warren Buffett, chairman of Berkshire Hathaway, described tariffs as "somewhat of an act of war."

However, most Wall Street executives, fearing President Trump's wrath, reportedly conveyed their concerns indirectly through lobbyists instead of publicly expressing their views.

Following the announcement of the reciprocal tariff policy, not only the New York Stock Exchange but also global financial markets fell into great turmoil for 3-4 days, and the voices of concern and criticism are expected to grow louder.

Meanwhile, Elon Musk, CEO of Tesla, who has emerged as one of President Trump's new closest aides, also appeared to express dissatisfaction towards Advisor Navarro indirectly.

On the 5th, Musk commented on a post on X (formerly Twitter) stating 'Navarro holds a Ph.D. in Economics from Harvard University', saying, "A Ph.D. in Economics from Harvard is not a good thing, but rather a bad thing," and pointed out that "the problem is that ego is bigger than brains."

Reporter Yoo Ji-hee, Hankyung.com keephee@hankyung.com