The Trump administration, under President Donald Trump, is optimistic about a rebound in U.S. economic growth over the next year, following a slow start in the first quarter, where growth was recorded at a meager annualized rate of 0.3 percent. Treasury Secretary Scott Bessent shared this sentiment in a recent interview with Bloomberg TV, expressing confidence that the various pro-growth initiatives introduced by the administration, including tax cuts and deregulation, will lead to a significant uptick in economic activity.
Bessent projected that by this time next year, the U.S. economy could exceed 3 percent growth as these policies take effect. He emphasized that while the government is pushing forth several projects and a major tax reform package, there remains a concern that potential pushback from Democrats and judicial challenges could impede growth.
The slow growth in the first quarter was influenced by businesses increasing imports in anticipation of tariffs announced by Trump. However, Bessent is hopeful that upcoming trade negotiations will yield positive results, hinting at the potential announcement of “several large” trade deals in the near future, including ongoing discussions with India and upcoming in-person negotiations with Chinese officials to address tariff matters.
In addressing the European Union, Bessent noted that most U.S. trading partners have negotiated “in very good faith,” although he pointed out the EU as an exception. Trump’s recent threats to impose steep tariffs on EU imports aim to spur action amidst perceived delays in negotiations.
Overall, the administration remains committed to its economic agenda, fostering hope for improved growth as significant trade deals and reforms are anticipated to materialize soon.