Skip to content
Search

Latest Stories

What We're Watching

Trump vs. the Treasury on tariffs

​Scott Bessent, U.S. President-elect Donald Trump's secretary of treasury.

Scott Bessent, U.S. President-elect Donald Trump's secretary of treasury.

REUTERS/Kevin Lamarque/File Photo
Make us preferred on Google

Is US President Donald Trump already at odds with his cabinet picks? Rather than impose high tariffs on select countries all at once, US Treasury Secretary Scott Bessent has suggested that Washington levy universal 2.5% tariffs on all US imports and gradually raise them, giving businesses time to adjust and countries time to negotiate.


This contradicts Trump’s strategy of hitting high and hard like he did when he threatened 25% and 50% tariffs on Colombia over the weekend. The tariff war between Washington and Bogota lasted less than 12 hours, with Colombian President Gustavo Petro initially matching Trump’s tariffs before both countries backed down and deportation flights resumed.

When asked about Bessent’s suggestion of gradual tariffs, Trump rejected it and said he wanted a “much bigger” rate. He has repeatedly threatened to impose 25% duties on Canada and Mexico from Feb. 1, which White House Press Secretary Karoline Leavitt confirmed on Tuesday “still holds.”

Is this split a tempest or a tiff? According to Nancy Wei, a trade and supply chains analyst at Eurasia Group, it’s neither. “Bessent’s recommendation for a 2.5% across-the-board tariff appears to be a strategic negotiating position rather than a direct disagreement with President Trump,” she says.

“The upcoming confirmation hearing for Commerce Secretary [nominee] Howard Lutnick will be telling, as his views on gradual tariff implementation — if questioned — could provide insights into the administration’s overall strategy.”

More For You

Thousands of people gather at the Palacio de Cibeles, seat of the Madrid City Council, in Madrid, Spain during demonstrations held outside city halls in autonomous communities across Spain in protest of the mass entry of migrants at the Ceuta border.

Thousands of people gather at the Palacio de Cibeles, seat of the Madrid City Council, in Madrid, Spain, on September 2, 2024, during demonstrations held outside city halls in autonomous communities across Spain in protest of the mass entry of migrants at the Ceuta border.

Aaron Heredia/NurPhoto
Immigration protests rock Spain Tens of thousands of people took to the streets across Spain on Wednesday in protest against Prime Minister Pedro Sánchez’s welcoming immigration policy and his handling of the immigration crisis in the North African Spanish enclave of Ceuta. In July, more than 70,000 people crossed into Ceuta from Morocco in the [...]
A police officer in protective clothing walks next to an explosive-disarming robot (EOD) at Leipzig/Halle Airport.

A police officer in protective clothing walks next to an explosive-disarming robot (EOD) at Leipzig/Halle Airport in Schkeuditz, Germany, August 5, 2026

REUTERS/Axel Schmidt
Germany and EU to hit back at Russia over drone plot The German government has formally accused Russia of orchestrating a failed drone attack at Leipzig airport last month. The drone, which approached a cargo plane that was taking weapons to Ukraine, failed to explode as planned. In response, Berlin will shrink Russia’s diplomatic presence in [...]
An electronic board displays that the secondary market yield on newly issued 10-year government bonds has risen to 3.000 percent, in Chuo Ward, Tokyo, Japan.

An electronic board displays that the secondary market yield on newly issued 10-year government bonds has risen to 3.000 percent, in Chuo Ward, Tokyo, Japan, on September 1, 2026.

Taketo Oishi / The Yomiuri Shimbun via Reuters Connect
Global bond-fire rages as investors fret about inflationInvestors around the world are selling off government bonds amid concerns about rising inflation and unsustainable spending by some large economies. The yield on 10-year bonds issued by Japan, for example, has reached its highest level in 30 years as Prime Minister Sanae Takaichi pushes a new [...]
Oil workers drilling a well in an oil field, Venezuela.

Oil workers drilling a well in an oil field, Venezuela.

REUTERS/Science Photo Library
US strikes controversial Venezuela oil dealThe US government will take a majority stake in a new company that has the rights to develop 65 million barrels of Venezuelan crude, or about one-fifth of the country’s total proven reserves. The deal aims to secure massive investment in the dilapidated Venezuelan oil industry, boost US energy security, [...]