Bessent said Trump was pursuing different strategies with different tariffs, noting that recent tariff threats against Colombia, Mexico and Canada were aimed at ensuring action by those governments on non-trade issues such as immigration.

Those actions were not aimed at raising revenue, but effecting change in the targeted countries, he said.

Overall, however, he said tariffs were focused on helping re-establish manufacturing in the US in key sectors, which should boost corporate revenue and ultimately result in declining income from the tariffs themselves.

“Tariffs are a means to an end, and I think that end is bringing the manufacturing base back to the US,” he said.

“In theory, tariffs would be a shrinking ice cube. That you would tariff a country and then as the production comes back to the US the income tax – the corporate revenues and the paid income tax – goes up and the tariff income would go down.”

Trump has said Bessent will be a core part of his trade team, along with his nominee to head the commerce department, Howard Lutnick, and his nominee for chief trade negotiator, Jamieson Greer.

Bessent, a hedge fund manager and founder of Key Square Capital Management, voiced support for Trump’s plans to impose steep tariffs during his confirmation hearing last month, saying they would combat unfair trade practices, raise revenue and increase US negotiating leverage, including on non-trade issues.