Trump’s Treasury Pick Boosts Markets as New Tariff Plans Shake Global Stocks

Scott Bessent's nomination as Treasury Secretary sparks market optimism, but Trump's sweeping tariff threats raise economic uncertainty.

Scott Bessent, a hedge fund veteran, has been nominated as Treasury Secretary by President-elect Donald Trump, drawing praise from Wall Street and global analysts for his market-friendly stance.
U.S. markets rallied on Monday following Bessent's nomination, with major indexes like the Dow Jones and Russell 2000 hitting record highs, while bond yields dropped significantly.
Trump announced plans to impose new tariffs, including a 10% increase on Chinese imports and a 25% tariff on goods from Mexico and Canada, signaling a potential end to the USMCA trade deal.
Global markets reacted negatively to the tariff threats, with Asian markets, including Japan's Nikkei 225, experiencing declines, while the Australian dollar weakened against the U.S. dollar.
Economists warn that an escalation in trade tensions could dampen global growth, with Australia particularly vulnerable to reduced Chinese demand for exports, potentially prompting earlier interest rate cuts.