Larry Summers slams Treasury Secretary Bessent’s ‘ludicrous’ tariffs claim

Larry Summers criticized Treasury Secretary Scott Bessent for his “ludicrous” claims that Chinese producers would bear the brunt of President Trump’s tariffs.

Summers, who held positions in the Treasury Department under Presidents Bill Clinton and Barack Obama, disagreed with Bessent’s assertion that prices for US consumers would not increase.

Bessent’s claims were challenged by Summers in a post on X, where he stated, “What is the argument or authority for a claim that seems ludicrous?”

Summers pointed out that steel prices had already risen due to the anticipation of tariff effects, contradicting Bessent’s theory.

Bessent maintained that Chinese manufacturers would bear the tariffs without passing on the costs to consumers, a claim that Summers found questionable.

Despite the differing opinions, Trump’s tariffs on various countries continue to impact global economies recovering from the pandemic.

While Bessent remained confident in his stance, economists warned of potential inflationary effects from the tariffs.

Trump’s approach to imposing tariffs may become more selective, excluding certain sectors while targeting others like automobiles, aluminum, and pharmaceuticals.