US Finance Minister Scott Bessed pointed out today (6.5.2025) that “nothing” shows that the USA has entered into recessioncommenting on increasing concerns about the consequences that new customs duties will have on economic activity.
“I believe in the facts and there is nothing in the facts that we are in recession,” Scott Bessed said, speaking to the House Budget Committee. The minister referred to the latest US employment data “that was surprised, in a good sense”, as unemployment remained stable at 4.2% and more jobs were created in April than originally projected.
Experts expect the rapid increase in tariffs on imported products will lead to less growth, more inflation and unemployment. The possibility of recession in the world’s largest economy has also increased, analysts estimate.
Today, Bessed explained that the US government’s economic policy is based on three pillars: trade, tax reduction and deregulation. The latter two will balance the consequences of duties.
“Who pays for duties?” Democratic MP Mark Pokan repeatedly asked.
“This is a very complex issue,” Bessed replied.
“Consumers pay Trump’s duties,” Pan commented, as he did not receive a satisfactory response from the minister.
Many countries, whose products have been imposed, are trying to persuade the US government to review its decision. “We will also be able to announce trade agreements with some of our most important commercial partners within the week. They came with very good suggestions, “Besed said today.
As for China, the minister said the negotiations have not started “yet”.
Beijing responded to almost all duties imposed by the US on Chinese products.
Bessed recently said that the duties had reached such a level on both sides that was equivalent to an “embargo” in commercial transactions.
Source: RES – EIA