Treasury Secretary Scott Bessent wasn’t directly involved in setting the steepest American tariff rates since before World War II. But he’s now in charge of negotiations to avoid them getting implemented.

The former hedge fund manager has vaulted to the front of the line in President Donald Trump’s list of advisers in recent days, in a context where a historic selloff on Wall Street put pressure on the administration to ease off of its maximalist position on import duties.

Jamie Dimon, arguably the biggest luminary in U.S. finance, specifically called Wednesday for Bessent to take the lead. “Let Scott take the time” with trading partners to craft deals, Dimon said in a Fox Business appearance that Trump said he watched.

Shortly after, Bessent canceled a midday appearance with Republicans on Capitol Hill to discuss the GOP’s tax-cut bill. Later in the day, he emerged at the White House to speak to reporters as the administration’s initial face, detailing Trump’s decision on a 90-day pause for most of the “reciprocal” levies to allow for talks.

Before he was picked as Treasury chief, Bessent had described Trump’s approach as “escalate to de-escalate,” a mantra that he dropped after officially joining the team. But that is now arguably what’s unfolding. Trump tapped Bessent, along with U.S. Trade Representative Jamieson Greer, to take the lead on talks with Japan, which is being prioritized as a key ally and a nation that came forward quickly.

At a Cabinet meeting Thursday, Trump cited Bessent and Commerce Secretary Howard Lutnick as “people that are working on deals.” Bessent said at that session that the Treasury, Commerce and USTR office will be “putting a process in place.” Trump will be directly involved in negotiations, he also reiterated.

Stocks surged Wednesday on news of the pause, but the S&P 500 gave up more than a third of the surge Thursday as investors contemplated the prospect of difficult talks with dozens of trading partners.

“What happened yesterday was the market saw that they have a spokesperson” in Bessent, said Josh Lipsky, senior director of the Atlantic Council’s GeoEconomics Center. “Today reality set in,” he said of the Thursday drop in stocks. For Bessent, Wednesday was “one of the most important days of his early tenure so far, but there’s a lot of tests yet to come.”

Role shift

It’s a sudden shift for the Treasury chief, who in recent weeks had instead been co-leading negotiations on the tax package with Republican lawmakers, along with National Economic Council Director Kevin Hassett.

A Treasury spokesperson declined to comment.

Last November, it was Lutnick who appeared to be the undisputed trade czar, as Trump not only picked him as Commerce chief but also said he “will lead our tariff and trade agenda,” and have “direct responsibility” for Greer’s USTR office as well.

More recently, presidential adviser Peter Navarro appeared ascendant, having played a major role in the reciprocal tariffs unveiled on April 2, which Trump dubbed “Liberation Day.”

“I wasn’t involved in the calculations of the numbers” announced April 2, Bessent said earlier this week as stocks tumbled and Treasury yields soared — stoking concerns about not just a recession but even a financial crisis.

But now he’ll be directly negotiating with U.S. trading partners on whatever new sets of numbers result from the trade talks. He’s indicated that, along with Japan, South Korea, Vietnam and India are among the priorities, and highlighted how those nations geographically surround China — which has been walloped by a 145% tariff hike, with no off-ramp yet apparent.

Market turmoil

“I’m going take a lead negotiating role in a lot of the tariffs, starting with the Japanese,” Bessent said Wednesday, noting that he would be staying in town for Easter for the talks with other countries. Next week, he heads to Argentina.

What’s unclear is whether the current approach, and Bessent’s key role, was all part of some grand master plan or simply just a quick reaction to a Wall Street selloff that saw the S&P 500 sink into a bear market and a tumble in U.S. Treasuries that raised fears of a funding squeeze.

Bessent’s more prominent role is “an encouraging sign for investors,” said Brian Gardner, the chief Washington policy strategist for Stifel.

In the wake of the April 2 announcement, Bessent repeatedly touted in news interviews that dozens of nations had approached Washington seeking talks, and counseled trading partners against retaliation. Omitted from the signaling: any suggestion the new, steep tariff wall would stick for the long term and serve as a force for reshoring manufacturing from abroad — something that Navarro typically pushes.

Bessent, a South Carolina native, also stayed close to Trump after last week’s announcement — flying to Mar-a-Lago over the weekend to consult with the president in the wake of last week’s slump in equities.

Team dynamics

For his part, Navarro said shortly after Bessent’s remarks at the White House Wednesday that “this has unfolded exactly the way it should.” He also reiterated his view that what’s coming is “no negotiation” although the U.S. will listen to what trading partners have to say. “We are all on the same page” in the administration, he argued on Fox Business.

Whether that apparent unity sticks as negotiations unfold remains to be seen. Hassett said Thursday that “about 15” countries have made “explicit offers that we’re studying and considering — and deciding whether they’re good enough to present to the president.”

Thursday’s unsettled session on Wall Street showcased that the pressure’s on for deals that reassure investors.

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(With assistance from Erik Wasson, Saleha Mohsin, Liz Capo McCormick, Akayla Gardner, Stephanie Lai, Josh Wingrove and Justin Sink.)

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