US Treasury Secretary: "Trade deficit can be reduced to the 5% range with tariffs alone"

US Treasury Secretary Scott Bessent stated that trade deficits could be significantly reduced and fiscal revenue increased through tariff policies.

According to Walter Bloomberg, a foreign economic news channel, on the 14th (local time), Secretary Bessent said, "With tariffs alone, we can bring the trade deficit ratio down to the 5% range" and emphasized, "August and September will be crucial periods to test the effects of tariff revenue." He also added, "There is a possibility of securing more than $300 billion additionally."

Regarding the Russia issue, he stated, "President Trump is willing to continue dialogue with Putin," but also said, "It is uncertain whether Putin will agree to a ceasefire." Additionally, he strongly urged the European Union (EU) that "On the Russia issue, now is the time to show action" and "the time has come for a decision."

Meanwhile, according to Kalshi's tally for the day, the probability of a 50bp (0.50% point) rate cut at the September Federal Open Market Committee (FOMC) meeting reflected 11%, surpassing the probability of a hold (10%) for the first time. While the outlook for a 25bp cut remains dominant at 81%, the possibility of a more aggressive cut is also gaining attention.