Worried investors urged to bet on Trump

Treasury Secretary Scott Bessent urged skittish global business leaders Monday to ignore President Donald Trump's economic naysayers and ramp up investment in the United States, defending an economic agenda that economists warn will slow economic growth and exacerbate inflation.

- ALAN RAPPEPORT

Speaking to executives, entrepreneurs and policymakers, Mr Bessent argued that the Trump administration's economic plans go beyond trade policy and will pay off in the long run. He urged them to also focus on Trump's plans to cut taxes and regulation, which he said would spur job creation and output.

"Tariffs are engineered to encourage companies like yours to invest directly in the United States," Mr Bessent said in remarks at the Milken Institute Global Conference in Los Angeles. "You'll be glad you did — not only because we have the most productive workforce in the world. But because we will soon have the most favourable tax and regulatory environment as well."

His comments came just hours after Trump ordered up new tariffs on foreign film producers, a decision that left many in Hollywood puzzled about how such a tax would work.

The Treasury secretary has been working to ease concerns among investors that Trump’s trade plans will destabilise the global economy. Last month the president levied tariffs on countries around the world and escalated a trade fight with China, which sent financial markets plunging.

Since then, Mr Bessent has been racing to negotiate trade deals with dozens of countries. He has also signalled that the China tariffs are not sustainable, offering hope that Trump would soon begin negotiations to lower them.

"Our goal with trade policy is to level the playing field for our great American workers and companies," Mr Bessent said.