Bessent: Federal Layoffs Expected to Fill Manufacturing Jobs Created by Trump Tariffs

Treasury Secretary Scott Bessent stated that the Trump administration aims to revitalize U.S. manufacturing by reallocating laid-off federal workers to new jobs created by tariffs on imports, particularly from China. In interviews, Bessent emphasized that while tariffs are intended to generate revenue and incentivize domestic production, they have also led to significant stock market declines and economic concerns. He argued that this strategy would shift economic power from the government to the private sector, though he faced criticism for asserting that the private sector was in recession under the Biden administration despite record job creation. Bessent also mentioned that advancements in automation and AI may reduce the number of workers needed in manufacturing. Meanwhile, critics have highlighted the impracticality of replacing lost jobs and warned of a potential recession stemming from these policies. The overall economic climate remains tense, with significant market volatility following the announcement of steep tariffs.