"Tariff Deferral, Not Surrender"... Key Player in Changing Trump's Mind, Treasury Secretary Scott Besant

It is reported that U.S. President Donald Trump's decision to defer reciprocal tariffs for 90 days was significantly influenced by Treasury Secretary Scott Besant (pictured).

According to U.S. media such as the Wall Street Journal (WSJ), the Washington Post, and Politico, Secretary Besant suggested to President Trump on the 9th (local time) that the decline in bond values was severe and that if it continued, it could hinder the implementation of other national agendas such as the deportation of illegal immigrants. On the same day, when China raised tariffs on the U.S. from 34% to 84% in retaliation for reciprocal tariffs, he proposed, "Let's use China as an exit strategy." He emphasized a strategy of negotiating with other countries while targeting China, which is at the core of trade deficit and technology theft issues. Regarding the deferral of reciprocal tariffs, he persuaded President Trump by saying, "It is not a surrender but an opportunity to expand trade negotiations with each country."

Before President Trump made a surprise announcement on social media at 1:19 PM that day about the 90-day deferral of reciprocal tariffs, he urgently summoned Secretary Besant and Commerce Secretary Howard Lutnick to the Oval Office. It is known that the announcement of the deferral of reciprocal tariffs was drafted there.

Secretary Besant spent time with President Trump at Mar-a-Lago in Florida on the 6th and returned to Washington, D.C. together on Air Force One the next day. He also received numerous calls from Wall Street figures and leaders of various countries ahead of the U.S. reciprocal tariff announcement and reportedly felt a strong need to persuade President Trump during this process. Besant is the founder of the Wall Street hedge fund Key Square Group.

Secretary Besant was once criticized for losing policy leadership to the 'tariff hardliners' who insisted on pushing through reciprocal tariffs. However, it is analyzed that his role in changing President Trump's mind during the deferral of reciprocal tariffs has strengthened his position. Peter Navarro, the White House trade advisor and a representative of the tariff hardliners, was not present when President Trump drafted the announcement of the deferral of reciprocal tariffs.

Reporter Hyein Lee hey@hankyung.com