At the Milken Global Conference, U.S. Senior Officials Confront Trade Uncertainty Stemming from Trump's New Tariff Policy.
On May 5, 2025, the 28th annual Milken Institute Global Conference was held in Beverly Hills, California, where senior leaders from the finance, technology, and government sectors discussed the trade uncertainties triggered by the new tariff policies introduced by Trump. U.S. Treasury Secretary Scott Besant stated that tariffs are crucial for reviving investment and manufacturing, but business leaders, such as Citigroup CEO Jane Fraser, noted that while a 10% tariff is manageable, the uncertainty is what hinders investment. The U.S. has imposed tariffs of up to 245% on Chinese goods, impacting the global economy, leading to a contraction in Asian manufacturing and a decline in UK exports.
Key Updates
05/05 21:01
At the Milken Global Conference, U.S. Senior Officials Confront Trade Uncertainty Stemming from Trump's New Tariff Policy.
On May 5, 2025, the 28th annual Milken Institute Global Conference was held in Beverly Hills, California, where senior leaders from the finance, technology, and government sectors discussed the trade uncertainties triggered by the new tariff policies introduced by Trump. U.S. Treasury Secretary Scott Besant stated that tariffs are crucial for reviving investment and manufacturing, but business leaders, such as Citigroup CEO Jane Fraser, noted that while a 10% tariff is manageable, the uncertainty is what hinders investment. The U.S. has imposed tariffs of up to 245% on Chinese goods, impacting the global economy, leading to a contraction in Asian manufacturing and a decline in UK exports.
Background of Tariff Policy and the Trump Administration's Stance
Since Trump returned to the White House in early 2025, his administration has swiftly restarted and expanded tariff policies. According to U.S. Treasury Secretary Bessant at a conference, tariffs, tax cuts, and deregulation form the three pillars of Trump's economic policy, aimed at attracting businesses back to the U.S., creating jobs, and strengthening manufacturing. He stated in his speech: "Tariffs are designed to encourage companies to invest in the U.S., hire American workers, build factories, and manufacture products domestically."
Bessant further pointed out that the Trump administration has laid the foundation for a "golden age economy" and announced that the budget proposal being pushed by Congress will continue and expand the tax cut policies of the first term, including tax relief for small businesses, R&D tax credits, and full deductions for equipment expenditures.
Business Community's Caution and Response
Although Bessant emphasized that the U.S. is the "home of global capital," business executives at the meeting expressed cautious attitudes towards the actual impact of tariff policies. Citigroup CEO Jane Fraser admitted at the meeting: "Most companies are currently in a state of uncertainty, watching and waiting." She added that most clients can withstand a 10% tariff, but the uncertainty of such policies has led companies to delay investment plans.
Carlyle Group CEO Harvey Schwartz also noted: "This is a period full of uncertainty, and everyone is watching." He stated that although risk premiums are rising, investors are still actively seeking opportunities.
During private dinners and informal exchanges at the conference, financial leaders such as PJT Partners CEO Paul Taubman, Lazard CEO Peter Orszag, and hedge fund manager Bill Ackman expressed confidence in the U.S. capital market but did not shy away from acknowledging that tariff policies have delayed merger activities and capital expenditures.
Specific Content and Impact of Tariff Measures
According to current policies, the U.S. imposes tariffs of up to 245% on Chinese goods exported to the U.S., covering products such as syringes and electric vehicles. The Trump administration has also revoked the duty-free treatment for Chinese parcels valued under $800, imposing tariffs of up to 145%, significantly impacting cross-border e-commerce companies like SHEIN and Temu.
Additionally, the U.S. imposes a 25% tariff on all imported steel and aluminum products and has implemented new fee standards for Chinese ships entering U.S. ports. Trump has also hinted at launching national security investigations into semiconductor and pharmaceutical imports, paving the way for future tariff increases.
These measures have triggered backlash and retaliatory tariffs from multiple countries, including Canada, Mexico, and China. China's Ministry of Commerce has expressed willingness to negotiate, but the premise is that the U.S. shows respect and appoints representative negotiators.
Industry Response and Examples
During the conference, some industry representatives raised specific concerns about tariff policies. Al Cook, CEO of the world's largest diamond company De Beers, pointed out that diamond tariffs are "of no benefit" to the U.S., merely being passed on as a consumption tax, affecting $117 billion in annual jewelry sales and 200,000 jobs.
Cindy Allen, CEO of global trade consulting firm Trade Force Multiplier, stated that for small e-commerce businesses, the shift from zero to 145% tariffs is "unbearable," leading many operators to exit the market.
International and Regional Economic Reactions
The U.S. tariff policy has also created a ripple effect on the global economy. According to reports, manufacturing activity in many Asian countries contracted in April, with Chinese factory activity experiencing the largest decline in 16 months, and UK exports shrinking at the fastest rate in nearly five years. The Bank of Japan and other major economies have also lowered growth forecasts due to trade tensions.
Germany and India have exhibited "preemptive processing" behavior, with companies shipping goods before tariffs take effect. Analysts point out that India, with less tariff pressure and companies like Apple shifting production capacity, may benefit from the restructuring of U.S.-China trade.
