From the moment President Donald Trump announced his sweeping tariffs on Wednesday, through the following market riots the following day, Treasury Secretary Scott Bescent’s phone calls were illuminated with text messages from executives tied to his previous industry.
According to people familiar with the issue, multiple hedge fund managers and finance executives have reached out to him to help shake Trump with taxation. After all, as the former chief investment officer of Soros Fund Management, Bescent was a potential ally. He was seen as someone who could explain to the President that extreme new taxation would continue to damage the economy and cause chaos in the market.
However, in reality, according to those familiar with the issue, Bessent was not the main driver of the tariff announcement. He said that he will use his role in the elliptical office meeting to lay out potential market and economic scenarios based on different tariff levels.
Tariffs are primarily shaped by small groups within Trump’s inner circle, with important decisions regarding the structure of obligationsTo the wireBefore the president’s announcement. A spokesman for the Ministry of Finance declined to comment.
Now Trump’s bid to reshape the US economy and boost American manufactured goods is at odds with Wall Street facilities that have benefited for decades from the idea that international trade drives the world order. And even some Republican lawmakers are turning the alarm.
For at least the last two days, the market slaughter that Wall Street feared has been a success,SweepIt reduced the S&P 500 to its lowest level in 11 months, with $5.4 trillion worth. The fear of a recession is growing all over the world. And the executives gathered behind the Trump administration’s promise to cut taxes and facilitate regulations are now competing with the economic agenda that supports their business.
Private equity companies are like that cancel Restraining expectations of the initial public offering and a comeback of deals they hoped to help them raise funds. Hedge funds are Measuring You can’t even wager whether Trump’s next move is too unpredictable. JPMorgan Chase & Co. Bank leaders who, together with Economists, have predicted a more growth agenda, should strip their expectations. Predicting a US recession this year.
The market plunge has even brought some of Trump’s most enthusiastic supporters in the political world. Texas Sen. Ted Cruz said tariffs everywhere “destroy jobs from home and cause real damage to the US economy.” On his podcast, heWarned against taxationIt will make Republicans vulnerable to “blood baths” in the 2026 medium-term elections.
Having paid close attention to stock market performance in his first administration, Trump shows that he is not easily persuaded to change courses by a tariff-inducing plunge. He said that policy remained on Friday, and large corporations remained.IndifferentBy customs plans. The president was at West Palm Beach Golf Club as the market slides the most in five years.
Within the administration, market fallout has sparked tensions, and authorities are looking at whether market fallout will expand into its third session on Monday. However, there is a sense that policy change must come from the president alone. And Trump is focusing on tariffs, said someone familiar with the issue. He emphasizes the need to revive US manufacturing bases, secure supply chains and reduce dependence on rivals.
“The only special interest that will guide President Trump’s decision is in the interests of the Americans,” said White House spokesman Kush Desai. “The entire administration is in line with dealing with national emergency justified by President Trump, and is being raised by our nation, which operates regular trade deficits.”
Customs will be deployed
Trump’s advisors, who are not part of the administration, criticized how taxation is unfolding and the White House’s communications strategy, where markets are crashing. The person said a team of economists, business leaders and union members should have explained the plans on television.
In the weeks leading up to the tariff announcement, some Wall Street executives had already begun appealing to the Treasury Secretary for assistance. Others were published in warning. Citadel founder Ken Griffin repeatedly criticised the planned tariffs and said it would blunt US competitiveness, but Warren Buffett called the tariffs “a certain act of war.”
Management officials say Bescent is a key member of Trump’s economic team. But senior counselor Peter Navarro and Secretary of Commerce Howard Lutnick controlled the president’s attention on tariffs, someone close to the issue said. US trade representative Jamieson Greer was also an integral part of the team.
Bescent,In the interviewOn Bloomberg television after the tariffs were announced Wednesday, he said he was focusing on the administration’s tax agenda rather than part of negotiations with other countries.
Private equity companies have seen Trump’s arrival announce the return of IPOs, which have been largely dormant for the past three years, and the gentle tensions surrounding attracting wealthy individuals as clients. Instead, this week they were rushing to decide how portfolio companies would nursing painful stock slides that were affected by tariffs. Apollo and Kkr & Co. The stock notched the biggest two-day slump in history.
Dealmakers point out that some sectors, such as domestic manufacturing, may be ready for a major boost under the Trump administration. However, they expressed concern to acquaintances that it would be difficult to end the bet at the price they wanted if the markets fall into a recession. Already, companies such as Klarna Group PLC and StubHub Holdings Inc. have suspended IPOs.
They are trying to avoid airing their opinions publicly for fear of eliciting the president’s rage, instead trying to back-channel their concerns through proxies and lobbyists instead.
There are some kind of pushback among Capitol Hill tramplowers. Sen. Chuck Grassley and three other Republicans co-hosted a bipartisan bill that intends to reclaim tariffs in Congress, demanding approval of most new tariffs within 60 days. Majority leader John Tune, who ultimately has the power to decide whether to lift the bill for floor votes, said he plans to consider legislation.
“I know I’m interested in that,” Thune said Friday. He admitted that the party was looking at Wall Street carefully and said he hoped to see the outcome from Trump’s plans “quite fast.”
Meanwhile, on Saturday – White House aides announced the announcement as Wall Street and Corporate American traders and executives were still shaking from market mayhem.
He will advance to the championship on Sunday.
This story was originally featured on Fortune.com.
