Good Cops, Bad Cops: The Uncertainty Created by Trump’s Tariff Team

In the tumultuous moments following the Trump administration’s sudden decision to halt numerous sweeping “reciprocal” tariffs, Treasury Secretary Scott Bessent emerged as the key spokesperson for the policy shift.

“It took immense courage,” the well-dressed 62-year-old ex-hedge fund manager stated to the assembled reporters on 9 April. “It took great bravery to maintain our course until this juncture.”

Absent from the press conference after the markets surged were the other two officials responsible for delivering Trump’s tariff strategy: Commerce Secretary Howard Lutnick and trade adviser Pete Navarro.

Bessent’s prominent position in the announcement has been interpreted by some analysts as a clear indication of the shifting power dynamics within the White House, which ultimately prevented the US from plunging into a global trade war, despite all involved supporting Trump’s economic policy.

“He’s taking on the role of good cop,” remarked William Alan Reinsch, former head of the National Foreign Trade Council, while speaking to the BBC. “Lutnick and Navarro are the bad cops.”

Officially, the White House has remained mostly tight-lipped regarding the events leading up to Trump’s shocking decision to pause tariffs for most countries while increasing tariffs on China, with the president mentioning that he had spent “a few days” contemplating the move before it “came together” early on 9 April.

However, reports from US media indicate that Bessent, overwhelmed with inquiries from business leaders, played a significant role in influencing Trump, engaging in conversations on Air Force One over the weekend and in the Oval Office on the day of the announcement.

Earlier in his career, Bessent expressed doubts regarding tariffs. Observers speculate that his perspectives, coupled with substantial experience in the bond market, ultimately enabled him to gain the president’s attention over Navarro and Lutnick, both of whom favored a more aggressive stance on tariffs.

“It appears Trump was not focused on the bond market,” added Mr. Reinsch, now an economics expert at the Center for Strategic and International Studies. “Bessent managed to get him to pay attention.”

Mr. Reinsch, who was also an undersecretary of commerce for export administration during the Clinton administration, indicated that Bessent’s strategy has been “a classic approach to manage Trump.”

“Never tell him he is wrong or has made a blunder,” he advised. “Instead, suggest there’s a better path to meet his goals, emphasizing that the market isn’t responding optimally.”

On the morning of the announcement on 9 April, Trump convened in the Oval Office with Bessent, along with National Economic Council director Kevin Hassett and Lutnick, a prominent figure at Cantor Fitzgerald and a known opponent of China.

Two other pivotal individuals in the tariffs policy were not present, which led one source close to the White House to inform Reuters that there was a “shift in the hierarchy.”

One of them, US Trade Representative Jamieson Greer, was just minutes away on Capitol Hill, providing testimony regarding tariffs before a House committee.

Later that day, he would discover the tariffs announcement in real-time along with lawmakers, leading to a heated confrontation where he was accused of having the “rug pulled out” from under him.

Similarly absent was Peter Navarro, one of the most vocal advocates for tariffs, raising questions about his diminishing influence with the president.

At various points, those involved in tariffs issued contradictory statements regarding the policy, contributing to confusion and volatility in the markets.

“They are not in sync,” stated Mark Sobel, who dedicated nearly 40 years at the Treasury Department, including a tenure as deputy assistant secretary for international monetary and financial policy.

“You hear from Navarro, Bessent, and the president, and it’s like you’re experiencing whiplash,” he added. “This is not a coordinated team.”

Terry Haines, founder of the DC-based consultancy Pangaea Policy, suggested to the BBC that it was “intentional” for the administration to present multiple public figures representing tariffs.

“They aimed to send out numerous spokespersons, disseminate different viewpoints, and overwhelm the discourse with opinions,” he remarked. “While it might be effective in politics, it certainly puzzles the markets.”

Haines pointed to Navarro as an example, noting he receives “more leniency than expected” because of his four-month incarceration for contempt of Congress after disregarding a subpoena from a committee investigating the Capitol riot in 2021.

“They address different demographics. Bessent appeals to the financial press, whereas Navarro conveys a different narrative,” he explained.

However, Haines cautioned against assuming that any single individual was the most influential on Trump’s decision-making.

“Markets prefer to identify winners and losers, akin to tabloid stories,” he stated. “But we need clarity on whom to heed, and it ultimately defaulted to Bessent.”

Numerous experts interviewed by the BBC expect Bessent to assume a more significant public role in tariff policy, with Lutnick handling negotiations while Navarro, Hassett, and Greer take on supporting roles.

Haines believes Bessent will evolve into, in practical terms, “the spokesperson for economic policy.”

In the end, a more organized approach may lead to greater market stability, according to Andrew Hale, an economist at the conservative Heritage Foundation.

“I envision things becoming more predictable as we progress,” he indicated. “This is what businesses and investors seek.”