Peter Schiff Says Scott Bessent 'Knows The Answer' To Congress' 'Who Pays Tariffs' Question, Calls Treasury Chief 'A Very Smart Man'

Shomik Sen Bhattacharjee

Thu, May 8, 2025, 1:36 PM 3 min read

Economist Peter Schiff called Treasury Secretary Scott Bessent "a precise astute man" aft a viral proceeding clip showed the Cabinet authoritative stumbling implicit a elemental question astir who yet pays U.S. tariffs.

What Happened: "Our Treasury Secretary Scott Bessent is simply a precise astute man. He's not the blubbering idiot shown successful this clip ... He is stammering due to the fact that helium is struggling to formulate a BS explanation," Schiff wrote connected X.

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During Tuesday's House Appropriations session, Rep. Mark Pocan repeatedly asked, "Who pays tariffs, Mr. Secretary?" Bessent replied haltingly, calling the query "very complicated," earlier Pocan reclaimed his time. The stumble lit up societal media due to the fact that orthodox economics says tariffs are levied connected U.S. importers, who often walk the outgo to consumers done higher prices.

Bessent has been the nationalist look of President Donald Trump's 125% levy connected Chinese goods, a argumentation roll‑out crafted alongside Elon Musk's Department of Government Efficiency (DOGE) to curb the deficit.

Administration talking points reason Beijing bears the load — an assertion economists similar Schiff reject. By hesitating, Schiff says, Bessent "knows the answer" but could not quadrate it with the White House narrative.

Why It Matters: Bessent told House appropriators the system remains sturdy, citing stronger‑than‑expected occupation maturation and cooling ostentation arsenic grounds that the administration's "three‑legged stool" of trade, taxation cuts and deregulation is working. He dismissed recession worries, predicting first‑quarter GDP revisions volition travel successful higher and forecasting coagulated taxation receipts acknowledgment to AI‑driven postulation gains.

Even so, Bessent urged Congress to rein successful spending, noting past year's 6.7% fiscal‑deficit-to‑GDP ratio was a peacetime record. "We person acceptable the array for a robust system that allows Main Street to grow," helium said — a presumption echoed by Fundstrat's Tom Lee, who called the market's caller bounce a "White House put."