Overview

• The Trump administration has imposed broad double-digit tariffs on nearly every country, citing trade deficits as a key justification.
• Treasury Secretary Scott Bessent defended the tariffs, linking trade deficits to factors like the national budget deficit and the dollar's value.
• Fox Business host Larry Kudlow publicly questioned the validity of using trade deficits as a policy metric during a live interview with Bessent.
• Kudlow argued for a more targeted tariff approach, suggesting a focus on specific countries rather than a global application of duties.
• Financial markets have reacted negatively to the tariffs, with indexes declining several percentage points since the announcement.