Scott Bessent told finance leaders that “America first does not mean America alone” in a bid to heal the worldwide rifts caused by Donald Trump’s first 100 days in office.
The treasury secretary said Tuesday that the president was not a “trained diplomat” but was simply looking for a “beautiful rebalancing” of world trade after his chaotic tariffs sparked tumult on Wall Street and left the United States increasingly isolated.
Bessent insisted that “America first” was about seeking to restore balance to international trade.
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Speaking at the Institute of International Finance in Washington, he struck a conciliatory tone, saying: “I wish to be clear, ‘America first’ does not mean ‘America alone’. To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.
“Far from stepping back, America first seeks to expand U.S. leadership in international institutions like the IMF and World Bank,” Bessent added, referencing the International Monetary Fund. “By embracing a stronger leadership role, America first seeks to restore fairness to the international economic system.”
Despite criticizing the IMF and World Bank, he also said the U.S. is committed to both institutions. There had been concern that Trump may look to pull out of them.
After weeks of threats and intimidation, the speech appears to foreshadow a major sea change in the administration’s approach following Trump’s sudden change of tone on Tuesday evening, when he played down his administration’s trade feud with China and said he wasn’t planning to fire Federal Reserve Chairman Jerome Powell.
The president’s gentler approach was met with approval from the markets, which climbed amid hopes of some stability.
Bessent followed up the president’s remarks that any tariffs on China would end up being way below the current 145 percent by saying he was optimistic that an agreement would be reached.
He said there was an opportunity for a “big deal” between China and the U.S. and suggested there was common ground between the two governments.
“China needs to change. The country knows it needs to change. Everyone knows it needs to change. And we want to help it change because we need rebalancing too,” he said.
“If China is serious on less dependence on export-led manufacturing growth, and a rebalancing towards a domestic economy, if they want to rebalance, let’s do it together,” he added.
While the administration wants to work with the IMF and the World Bank, Bessent accused them of “mission creep” and focusing on climate change and gender in their “sprawling and unfocused agendas.”
“The IMF and World Bank have enduring value. But mission creep has knocked these institutions off course,” he continued.
On the World Bank, he added: “The bank should no longer expect blank checks for vapid, buzzword-centric marketing accompanied by half-hearted commitments.”
Bessent said that Trump’s approach to international trade “was not always in a way a trained diplomat would have done,” but he said it had been effective.
