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UBS On-Air: Market Moves

UBS On-Air: Paul Donovan Daily Audio 'Trade taxes and the US Treasury'

17 Jan 2025

Description

US Treasury Secretary-nominee Bessent is a more orthodox cabinet nominee. Yesterday’s confirmation hearings saw generally articulate answers. The responses on trade taxes were troubling. Bessent’s idea that an appreciating currency offsets tariffs is not supported by recent evidence. The idea that US workers will not pay trade taxes is wrong. As he’s an intelligent individual, these views may reflect the beliefs of the incoming administration, not Bessent’s understanding.

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