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

Economist Peter Schiff called Treasury Secretary Scott Bessent "a very smart man" after a viral hearing clip showed the Cabinet official stumbling over a simple question about who ultimately pays U.S. tariffs.

What Happened: "Our Treasury Secretary Scott Bessent is a very smart man. He's not the blubbering idiot shown in this clip … He is stammering because he is struggling to formulate a BS explanation," Schiff wrote on X.

During Tuesday's House Appropriations session, Rep. Mark Pocan repeatedly asked, "Who pays tariffs, Mr. Secretary?" Bessent replied haltingly, calling the query "very complicated," before Pocan reclaimed his time. The stumble lit up social media because orthodox economics says tariffs are levied on U.S. importers, who often pass the cost to consumers through higher prices.

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

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See also: Scott Bessent To Meet Chinese Officials For Crucial Trade Talks In Switzerland: Trump Administration

Administration talking points argue Beijing bears the burden — an assertion economists like Schiff reject. By hesitating, Schiff says, Bessent "knows the answer" but could not square it with the White House narrative.

Why It Matters: Bessent told House appropriators the economy remains sturdy, citing stronger‑than‑expected job growth and cooling inflation as evidence that the administration's "three‑legged stool" of trade, tax cuts and deregulation is working. He dismissed recession worries, predicting first‑quarter GDP revisions will come in higher and forecasting solid tax receipts thanks to AI‑driven collection gains.

Even so, Bessent urged Congress to rein in spending, noting last year's 6.7% fiscal‑deficit-to‑GDP ratio was a peacetime record. "We have set the table for a robust economy that allows Main Street to grow," he said — a view echoed by Fundstrat's Tom Lee, who called the market's recent bounce a "White House put."

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