Karoline (00:04):
Good afternoon everybody.
Speaker 1 (00:06):
Good afternoon.
Karoline (00:07):
How are you? Good to see you. We have a packed house and I have two very special guests with me today. I will start with some scheduling announcements. Tomorrow afternoon, President Trump will travel to Las Vegas, Nevada to hold a round table and deliver remarks on the Working Families Tax Cuts. On Friday, President Trump will travel to Phoenix, Arizona to deliver remarks at a Turning Point USA event at Dream City Church. And I'm really honored to be standing here today on Tax Day with two esteemed members of the president's cabinet and his excellent economic team, Treasury Secretary Scott Bessent, and small business administrator Kelly Loeffler. As we have seen this tax season, President Trump's Working Families Tax Cuts have put a historic amount of money back into the pockets of the American people this year. On the campaign trail in 2024, President Trump looked voters in the eye and promised them he would sign the largest tax cuts in the history of our country.
(01:03)
And on Independence Day last year, President Trump and Congressional Republicans delivered, passing the largest tax cut in history for working in middle class Americans, including no tax on tips, overtime, and social security. They also passed unprecedented tax relief for small businesses, farmers, workers, and families. With tax day officially here, the numbers prove these tax cuts have been nothing short of extraordinary. More than 53 million filers claimed at least one of President Trump's signature new tax cuts. The average refund this filing season is more than $3,400. The Trump administration has issued more refunds in larger refunds than in any year of the history of our country. And I will allow Secretary Bessent to break down the numbers in greater detail. President Trump and Republicans in Congress have always believed that the American people know how to spend their money better than the government does. But what the American people must not forget is that every single Democrat in Congress voted against these tax refunds.
(02:09)
The media has largely omitted this fact and other critical details in their stories covering the benefits of the Trump tax cuts. If the Democrats in Congress had gotten their way and blocked President Trump's historic legislation, Americans would have faced the largest tax hike in history, nearly $4 trillion. The average taxpayer would have seen a 22% increase in their tax rates. Democrats in Congress have proven over and over again that they are the affordability frauds who believe the government should keep more of the American people's hard-earned money. This president and Republicans in Congress fundamentally believe that Americans deserve to keep more of their hard-earned paychecks. It's a clear contrast for American families to keep in mind. So with that, I will turn it over to our great Treasury Secretary, Scott Bessent, and then he will turn it over to Kelly. Thank you.
Treasury Secretary Scott Bessent (03:01):
Good. Thank you, Karoline. I'm here to tell you that it has been a fantastic tax season. It has gone smoothly. It has gone efficiently from the point of view of the IRS, but most importantly, it's been a great tax season for the American people. Thanks to promises made, promises kept through the Working Families Tax Cuts, the president has delivered the record refunds to the American people. More than 45% of the filers of the returns that we have seen have had at least one of the four president's signature policies, no tax on tips, no tax on overtime. The deductions for our great seniors and the deductibility of interest on auto loans for American-made cars. And I will tell you that the biggest, one of those that Americans have taken is no tax on overtime. And it's the American way. If you want to work longer hours, you get to keep more of your money. And with that, we are seeing... I want to encourage everyone out there watching today to change their withholding if they haven't already done so, because if you change your withholding, then you will get an automatic real wage increase be on a weekly or a monthly basis, and you will be able to keep more of your money this calendar year. So with that, we have also seen with the Trump Accounts, we have had five million families file for Trump Accounts for their children. 1.2 million of those are eligible for the $1,000 seed bonus. So we look forward to that picking up more and more. For those of you who haven't done it, it's easy to remember, Form 4547. You can do it while you're filing your taxes. You can do it at any point during the year.
(04:54)
We think this is going to be transformational in terms of financial literacy. This is Financial Literacy Month and at Treasury and all over the administration, we are working with the American people, with American families, not only to give them more of their money, but to show them how to invest it in a safe, smart, and sound way. So with that, I will turn it over to Kelly.
Kelly Loeffler (05:19):
Great. Thank you, Scott. And good afternoon, everyone. Excited to be here on Tax Day. Important day for small business because small business and their employees have real relief thanks to President Trump's Working Family Tax Cuts. As administrator of the US Small Business Administration, it is my great honor to serve our great president as the cabinet level voice for America's 36 million small businesses. President Trump is right. Small business is big business. Indeed. They are a massive economic engine that creates two thirds of all new jobs. They represent 99% of all businesses and they drive about half of our GDP. The Working Family Tax Cuts are putting money back into the pockets of the hardest working Americans. That's why small business and their employees are benefiting the most. President Trump and Congressional Republicans have saved Americans from a $4 trillion tax hike, including a staggering 20% tax increase on working families. It would've destroyed millions of jobs.
(06:23)
Now, I've traveled the country from Maine to Alaska and not a single worker, not a single small business asked to pay a dollar more in taxes, yet every single Congressional Democrat voted to raise taxes, not just on small businesses, on our workers, on our seniors, on hardworking families. Thankfully, Republicans united behind common sense policy of letting Americans, not Washington bureaucrats or fraudsters keep more of what they earn. Now, so far, as you've just heard, 12 million small businesses have an average tax saving of $7,000. The 20% small business pass through deduction is now permanent, offering them certainty to plan for the future and the rocket fuel to create one million new jobs. Eric Williams at Prince Manufacturing in rural Georgia, he specializes in fabrication and machining. This year, he's reinvesting his tax savings to hire 500 new employees. The provisions for 100% expensing of equipment, expansion, and R&D are also growing production to help us reclaim industrial dominance.
(07:36)
At Blue Patriot Fab, which I visited this week in Omaha, the owners highlighted one of their newest buildings, and they call it the big, beautiful building because the tax cuts help them build it. Made in America is back, and that's why the America worker is winning too. No tax on tips and overtime means that millions of employees are now rewarded, not punished for working more, and it's already benefited, as you just heard, 31 million taxpayers. In Baltimore, John and Tony Minadakis are proud second generation owners of Jimmy's Seafood. Now, with no tax on tips and overtime, their 200 employees know that coming into work means going home with more pay. And Wade, a CNC machinist that I met at Lehigh Valley Plastics in Pennsylvania said he routinely takes on extra shifts and now the tax cuts reward his extra effort. And the benefits aren't just for tax season. As you've heard, the Trump Accounts are connecting young people from birth to the power of our free enterprise system.
(08:41)
With 529 savings accounts and Workforce Pell for trade schools, we're now training the next generation of skilled workers to fill millions of open jobs at small businesses. So in closing, America is open for business again, yet every Democrat voted no on the very tax relief that is restoring Main Street, that is putting more money back into the pockets of hardworking families. Small businesses are rebounding from years of Biden inflation, decades of unfair trade, and massive regulatory overreach. But thanks to President Trump's tax cuts, they now talk about expansion, hiring plans, and generational opportunity. This is America first in action, lower taxes, rising wages, and a thriving Main Street. Now millions of Americans are getting their largest tax refund ever, and Main Street is getting historic tax relief to keep the American dream alive. Thank you.
Treasury Secretary Scott Bessent (09:41):
Good. And before we take questions, I want to provide some numbers for you all. So Tax Day statistics as of April 12th, over 53 million filers, nearly 45% claimed one of President Trump's signature tax cuts. The average tax cut for filers benefiting from one of president's tax, the new tax cuts is over $800. Over six million filers have claimed no tax on tips with an average deduction of $7,100. Over 25 million filers have claimed no tax and overtime with an average deduction of $3,100.
(10:18)
Over 30 million seniors have claimed the enhanced deduction for seniors with an average deduction of 7,500, and over one million filers have claimed no tax on car loan interest on American cars for an average deduction of over $1,800. The average refund this filing season is over $3,400. Over 34 million families have claimed Republicans enhanced child tax credit, which is permanently doubled and expanded by the Working Families Tax Cuts. Over 105 million filers have claimed the permanently doubled standard deduction, simplifying tax filing for millions across America. So as much as people do not like to pay their taxes, and we saw
Treasury Secretary Scott Bessent (11:00):
... survey today that 70% of Americans still believe that they are overtaxed. This is a great day for the American people.
Karoline (11:08):
Thank you, Scott and Kelly. We'll now open it up to questions. You're welcome to ask me questions or either of the great cabinet officials next to me. And we'll start as always with our new media seat, Mr. Posobiec. Why don't you kick us off?
Jack Posobiec (11:20):
Thank you, Karoline. Secretary Bessent, if I may, there's been this media narrative out there that while we see the data on tax refunds, that it's not good enough, that the tax season has been too soft. What is your response to this media narrative regarding the tax refunds?
Treasury Secretary Scott Bessent (11:38):
Look, it's been an incredible tax season. We have done more with less at the IRS, that we have moved over millions of taxpayers to digital tax accounts. And that leaves us able to service more taxpayers in person and on the phone. And as we can see, the economy was very strong. We are seeing growth across the board in all areas. And as Kelly said, small business, Main Street are really the big beneficiaries. And this is what they don't want you to hear. That Wall Street always [inaudible 00:12:19]. This administration is focused on parallel prosperity and bringing prosperity back to Main Street, and that starts with people keeping more of their money.
Jack Posobiec (12:30):
And one more for Karoline as well as the administration in general, if I may. This past Saturday, I published a video of now former Representative Eric Swalwell in bed. And you mentioned the president said in Las Vegas, while Eric Swalwell was in Las Vegas in this video, I'm told, according to geotagging, this scandal has erupted now. Accusers coming forward, many others coming forward, as well as questions regarding his extremely close relationship with Arizona Senator Ruben Gallego. And I wanted to know if the administration had any comment on the fact that Senator Gallego seemed to be very vocal about wanting the release of the Epstein files, and yet when questions come to his own involvement with Eric Swalwell, he doesn't seem to want to provide anything.
Karoline (13:15):
Yeah. Look, I think the accusations and allegations against former Representative Swalwell are despicable and disgusting. I think it's also quite plausible, as you point out, Jack, that there were many other Democrats in this town on Capitol Hill who knew about his perhaps illegal behavior, certainly his disgusting and inappropriate behavior. And why were they silent for so long? I think those are questions that must be raised of these sitting representatives, including Mr. Gallego. And I hope that the journalists in this room will do their jobs and the journalists on Capitol Hill will do their jobs to ask Democrats in power how they knew about such despicable behavior from one of their elected representatives for so long, but never said or did anything about it. So that's what we hope to see as far as the White House and the president is concerned. Thank you. Peter.
Peter (14:01):
Thank you. I have one for you and then one for Secretary Bessent.
Karoline (14:04):
Sure.
Peter (14:05):
For you, Karoline, there are now 10 American scientists who have either gone missing or died since mid 2024. They all reportedly had access to classified nuclear or aerospace material. Is anybody investigating this to see if these things are connected?
Karoline (14:22):
I've seen the report, Peter. I haven't spoken to our relevant agencies about it. I will certainly do that and we'll get you an answer. If true, of course, that's definitely something I think this government and administration would deem worth looking into. So let me do that for you.
Peter (14:35):
Thank you. And Secretary Bessent, it doesn't sound like we're going to have $3 a gallon gas by summertime, which we had initially been told by the energy secretary. He now says that it would be very aggressive if we're going to get to the $3 a gallon gas by the summer. So when are we really going to get $3 a gallon gas?
Treasury Secretary Scott Bessent (14:58):
Well, I think that's going to be up to how the negotiations go. President Trump said this morning that he thinks we're nearing the end. The US kept their side on the ceasefire. We've stopped firing. The Straits of Vermouth have not been completely reopened, so we will see. And I'm optimistic that during the summer, we will see gas with a $3 in front of it sooner rather than later. It's bank week here in DC, so I've been meeting with a lot of my Middle Eastern counterparts, the finance ministers, and they all say that once the straits are open, they can start pumping again within one week.
Peter (15:41):
So not by summer, like Memorial Day, but maybe by Labor Day?
Treasury Secretary Scott Bessent (15:47):
Again, I'm optimistic that sometime between June 20th and September 20th, that we can have $3 gas again. And as I said this morning too, we are going to be watching the gas stations because they raised prices very quickly when the crude oil prices went up. We hope they'll bring them down just as quickly as crude oil prices have come down, which they've come down substantially just in the past 10 days.
Karoline (16:16):
[inaudible 00:16:16].
Speaker 2 (16:16):
Thanks so much, Karoline. Can you give us an update on the president's thinking on the next Attorney General? A lot of names have been going around like Ron DeSantis, Rudy Giuliani, Ed Martin. They're being floated as contenders. What qualities is the president looking for in a new AG? And will there be accountability for what many have described as weaponization within Biden's office when he was the president?
Karoline (16:40):
Sure. Well, certainly ensuring that there's accountability for the weaponization of justice that took place under the Biden administration is a top priority for this president. With respect to names that are floated, there are always names floated in the press. Sometimes I have a chuckle when I read some of the reports about certain people floated for certain jobs. As far as the president is concerned right now, Todd Blanche remains the acting Attorney General. The president feels he's doing a good job, and that's where it remains right now. I don't have any personnel updates for you today. Annie.
Annie (17:09):
Thank you, Karoline. I have a question for you and also for the Treasury Secretary. First of all, there was an interview that Dr. Mehmet Oz did recently where he described the president's views on his own diet. He said that he argued that diet soda is good for him because it kills grass. And if you pour it onto the grass, the grass is killed and it therefore must kill cancer cells. I'm wondering if you can ... Was this sort of an accurate description of how the president sees ...
Karoline (17:37):
Look, as we all know in this room, I think you know the president has a very good sense of humor. It's one of his most under-reported characteristics, I would say. I have heard him tell this joke before. I think the Wall Street Journal should get a better sense of humor.
Annie (17:50):
And then another one for you, has the president filed his taxes and is he going to release them publicly?
Karoline (17:55):
It's actually a very good question. I have not inquired with the president directly about his own taxes, but I'm happy to do so and we'll get you an answer on that.
Annie (18:02):
And Secretary Bessent-
Treasury Secretary Scott Bessent (18:02):
I have filed my taxes.
Annie (18:10):
[inaudible 00:18:10]. So the president has publicly said that you are the reason that he has not fired Chairman J. Powell. Will you make that case again to him as he's recently said that he still wants to fire the chairman?
Treasury Secretary Scott Bessent (18:21):
Look, I am confident that the process that we have laid out in terms of Kevin Warsh becoming the next Fed chair, he's going to have the hearing on the 21st of this month. He's a great candidate. We know that the Republicans on the Senate Banking Committee are aligned in that. And I am very optimistic that Kevin Warsh will be the chair of the Fed on time, and that will be a moot question.
Karoline (18:49):
[inaudible 00:18:50]. Steven, go ahead.
Steven (18:51):
Secretary Bessent, you mentioned that the no tax on overtime is the biggest one that people are claiming, you said 25 million people. Have you seen evidence that more companies are offering overtime or that people are working more overtime and increasing their productivity? And the second question, the health insurance industry is advertising heavily in DC describing themselves as the good guys in the whole healthcare system. President Trump has threatened to hold in their executives and force them to lower prices. Can you provide any update on the administration's efforts there?
Treasury Secretary Scott Bessent (19:20):
Okay. So I'll take the second one last because that's not my area. I don't wear a lot of hats here, but I am sure that the president makes his views known with corporate executives. And if that is true, then they will behold before him. And with overtime, as Kelly and I go out and talk to employers and workers around the country, they all want more overtime. And there was this narrative that I think over two million illegal aliens have either voluntarily deported or have been deported and that there would be a worker shortage. Well, what better way to fill that gap than with overtime for hardworking Americans and for them to keep more of it?
Kelly Loeffler (20:09):
Yeah. I'll just add that a great example are the factories that we see coming back thanks to 100% made in America expensing. Coosa Steel is a great example in Rome, Georgia, where the owner was down to running one shift one day a week. He's up to two or three shifts, five or six days a week. So thanks to reindustrializing this nation through our small manufacturing base, which most manufacturers in America meet the small business definition, 98% of them. We're seeing more shifts taking place, more opportunities for overtime, and the more willingness of workers to take on overtime shifts because in the past they were penalized by the tax system for taking on overtime.
Karoline (20:49):
Elizabeth, go ahead.
Elizabeth (20:51):
Thank you. This is for Administrator Loeffler. You talked about how the One Big Beautiful Bill benefits small businesses. With small business optimism falling in March, is the administration planning on providing any additional tax relief or other resources to small businesses that have been affected by high fuel prices during the Iran operation?
Kelly Loeffler (21:10):
Yeah. So one data point does not a trend make, and the long-term trend under President Trump has been for small business optimism to be above its 52-year average. Under Joe Biden, small business optimism fell below that average for 34 consecutive months because small business was being crushed by regulation, massive red tape, the threat of high taxes and all the burdens of the Green New Deal. So right now, small businesses are really in growth mode. They're planning to hire and the optimism is very strong. If you see in the NAM survey, National Association of Manufacturers came out, their optimism is up five points. So I think this is temporary and we'll get back on trend.
Speaker 3 (21:48):
What's the status of extending the Iran ceasefire, Karoline?
Karoline (21:53):
Yes. So I saw some reporting, again, bad reporting this morning that we had formally requested an extension of the ceasefire. That is not true
Karoline (22:00):
At this moment, we've remained very much engaged in these negotiation, in these talks. You heard from the vice president directly and the president this week, that these conversations are productive and ongoing, and that's where we are right now. I've also seen some reporting about the potentiality for in person discussions again. Those discussions are being had, but nothing is official until you hear it from us here at the White House. But we feel good about the prospects of a deal. The president mentioned that in his interview yesterday, and it's obviously in the best interest of Iran to meet the president's demands. I think he's made his red lines in these negotiations very clear to the other side, and so we are continuing to see how these conversations go.
Speaker 4 (22:44):
Would those talks be an Islamabad or where would they be in the next round?
Karoline (22:44):
They would very likely be in the same place as they were last time, yes. I would just want to make one point that's important to the president. The Pakistanis have been incredible mediators throughout this process and we really appreciate their friendship and their efforts to bring this deal to a close. So they are the only mediator in this negotiation. While there have been many countries around the world who want to offer their help, the president feels it's important to continue to streamline this communication through the Pakistanis, and so that's what continues to take place.
Speaker 6 (23:16):
Thank you, Caroline. How much room do you see for additional sanctions being placed on Iran? And do you feel like the United States is getting enough support from allies on that front? There was a letter that went to Homan and some other allies that suggested maybe the sanctions weren't... This could be for Secretary of Defense as well, but the sanctions basically weren't having the effect that the United States won.
Karoline (23:40):
I'll let the treasury secretary who's in charge of sanctions answer that question.
Treasury Secretary Scott Bessent (23:45):
Yeah. I think that's not a correct characterization. Yesterday, we announced Operation Economic Fury, and for over a year, we have had maximum pressure on the Iranians, both on blocking payments into the Iranian state and going after the accounts of the IRGC. One of what may prove to be fatal mistakes that the Iranians made was bombing their GCC neighbors and who are now willing to be much more transparent in terms of the funds or do a deeper dive in investigating the funds that are held within their banking systems. So we have pushed out to them the request that we want to freeze more funds of the leadership of the IRGC and any members of Iranian leadership.
(24:40)
The other thing that we have done is we have told countries that if you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions, which is a very stern measure, and the Iranians should know that this is going to be the financial equivalent of what we saw in the kinetic activities.
Speaker 6 (25:04):
Is this an example of expanding economically as opposed to militarily? Is this another phase of that?
Treasury Secretary Scott Bessent (25:09):
Exactly.
Speaker 4 (25:13):
Any updates on the insurance program, the US reinsurance program for ships and tankers sailing through the Strait of Hormuz? Any update on that, sir?
Treasury Secretary Scott Bessent (25:20):
Well, it's now up to 40 billion. It's run through the DFC, and we are waiting for the ships to be able to get some symbols of normality, and then they can come to the DFC and our private sector partners and request the insurance.
Speaker 4 (25:40):
What do you tell private shipping companies out there right now nervous about this whole thing, wondering if they should even get near the Strait?
Treasury Secretary Scott Bessent (25:47):
What's that?
Speaker 4 (25:48):
What do you tell to encourage shipping companies to do business through the Strait?
Treasury Secretary Scott Bessent (25:53):
Well, I think we're going to have to wait and see when they are permanently open, because this is a mechanism. When we declare that it is safe, they also have to have insurance. Lloyd's of London had skyrocketing insurance during the time. The rates are still very high. So we want to provide, the US government will make a profit on this, but we want to provide a more normalized level and an economically sound basis for ships to move in and out of the Gulf as they did before the start of the conflict.
Speaker 7 (26:25):
Caroline, I appreciate it. Thanks, Caroline. I appreciate it. So I want to cover two topics if I could, the Tax Day, but also the confirmation. So the confirmation hearing's set for next week for Kevin Warsh, but Tom Tillis, Senator Tom Tillis is still a no, and he's holding firm on that. How are you going to win over Senator Tillis to get this confirmation out of committee?
Treasury Secretary Scott Bessent (26:44):
I'm sure Senator Tillis wants to do the best thing for the Federal Reserve for the American people. He has publicly said that Kevin Warsh is a great candidate for the chair, so let's get to the hearings and see where we are then.
Speaker 7 (26:56):
I want to ask you about Tax Day, if I could. So the tax gains that you've talked about through the One Big Beautiful Bill, is that going to offset the consternation from Americans, for lack of a better term, over the $4 gas gallon of gas?
Treasury Secretary Scott Bessent (27:11):
Well, again, as I said, no one's ever objected to more money in their pocket, so the Americans have more money, they can decide how they want to spend it. And I did want to come back to the overtime question, because I was up in Westchester County last Friday, and I met with several of the first responders and police unions, and those, whether it's our great policemen, our firemen, our ambulance drivers, they all now want more overtime, and how great it is to have them to be able to be engaged and keep more of their money.
Speaker 9 (27:50):
Thank you, Caroline. For both of you perhaps, are President Trump's threats of a 50% tariff against China still on the table now, or is the letter exchange that we talked about now taking that off of the table?
Karoline (28:04):
Well, as you know, the president spoke about the letter with respect to the correspondence between he and President Xi. President Xi assured the president that they are not supplying Iran with weapons throughout this conflict and that assurance was made to the president. It's obviously something the administration keeps close tabs on with respect to tariff. You have any update on that, Mr. Secretary?
Treasury Secretary Scott Bessent (28:26):
I don't have an update on the tariffs, but I do have an update on sanctions. Iran used to be the largest state sponsor of terrorism. China was purchasing more than 90% of their oil, which was about 8% of China's energy needs. We believe this blockade in the straits, there will be a pause of Chinese buying, but I will tell you that two Chinese banks received letters from the US Treasury. I'm not going to identify the banks, but we told them that if we can prove that there is Iranian money flowing through your accounts, then we are willing to put on secondary sanctions.
Karoline (29:05):
Nick, go ahead.
Speaker 8 (29:05):
Thank you, Caroline.
Karoline (29:09):
Go ahead, Nick.
Speaker 10 (29:09):
Just a quick followup. Are you considering any more sanctions relief, Mr. Secretary, for countries that are suffering right now in order to get more oil to your allies?
Treasury Secretary Scott Bessent (29:23):
We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil. Again, that was oil that was on the water prior to March 11th. So all that has been used.
Speaker 10 (29:38):
Thank you very much.
Karoline (29:38):
Nick, go ahead.
Speaker 11 (29:38):
Thank you, Caroline. My question's for the [inaudible 00:29:41]-
Speaker 12 (29:40):
Treasury Secretary, as you both noted, 53 million Americans have used one of these new tax exemptions the President enacted. Can you speak to not only the relief that that's bringing specifically working class Americans like waiters, bartenders, overtime workers, but also the impact this is going to have on the economy?
Treasury Secretary Scott Bessent (30:00):
Well, a couple of things there is I can tell you, I think Kelly's very popular, but I think with service workers, I may be the most popular cabinet secretary in DC because when I show up, a doorman, not so much bartenders, but waiters, waitresses, they all say, "Thank you for no tax on tips." Again, I was in a diner up in Westchester County, and this is a home run.
(30:26)
In terms of what's happening with these folks and what we can't tell you yet, and we will be able to provide data at a later date, that 52 million is how many have used at least one of those. So we expect that there are probably multiple filers or filers who have used at least more than one of those four signature things. And look, again, this is the America first, Americans, hardworking Americans keeping more of their money, just like with our small businesses. If we go back and look, when you hear the left talk about this was a tax cut for millionaires and billionaires, they wanted to raise the tax rate for everyone making more than $500,000, that is a small business killer.
Speaker 5 (31:19):
Thank you. I have one question for the secretary and then the administrator. Mr. Secretary, since we're on the topic of China a few minutes ago, we are a little over a year past Liberation Day, the tariffs. The goods trade deficit with China has dropped sharply. Are those gains sustainable and are you worried about any retaliatory actions that could go against those gains?
Treasury Secretary Scott Bessent (31:45):
I actually think we're going to be building on those gains in terms of the trade deficit dropping with China. Since last summer, there's been great stability in the relationship and really the keystone to the relationship is the strong respect that the two leaders have between each other. My experience has been when the communication is at the top, then we follow that directive and those wishes. We had the meeting in Busan, Korea. In October we will be having the state visit in Beijing, and so I expect great stability in the relationship, but that doesn't mean that our trade deficit can't continue dropping.
Karoline (32:31):
Go ahead.
Speaker 13 (32:32):
Question for the administrator. I know that there are orders and shipments and factory equipment there at record highs. How many small businesses has the SBA assisted with loans to support them?
Kelly Loeffler (32:46):
Well, the SBA set an all time lending record last year, $45 billion under President Trump because small businesses now have access to the capital that they need to build in America. Again, we are becoming a nation of builders and we
Kelly Loeffler (33:00):
... We see that on the ground, factories expanding. As a result, we have record PMI, which is purchasing managers index, manufacturing expansion, two consecutive months in a row of export records. And so, when you look at where our nation has come in terms of export, import imbalance, it's been unfair to the American worker and to American industry. And we're reshoring whole industries, because of this tax bill.
Speaker 14 (33:30):
I have two questions for you. The first one is about Iran. The second one's actually about United Airlines that I want to ask you about. So on Iran, is there a timeline for how long this blockade is going to remain in place in the Strait of Hormuz by the United States, that President Trump has voiced to you or that you've heard among officials?
Karoline (33:48):
Sure. I will never set timelines on behalf of the President of the United States, but with respect to the blockade, as you know, it has been fully implemented and it's being enforced against vessels of all nations entering or departing Iranian ports. I want to make that point clear. I've seen some misreporting on that as well. This includes all Iranian ports on the Arabian Gulf and the Gulf of Oman. And our US forces in the region are supporting the freedom of navigation for vessels that are transiting the straight to and from non-Iranian ports. So I know some in the press were confused about that. We are supporting the freedom of navigation, just not with respect to any tanker or vessel that would benefit the economy of Iran as these negotiations continue.
Speaker 14 (34:31):
So there was reports that the CEO of United proposed a merger with American Airlines. This would affect tens of millions of Americans. That was proposed in a meeting with President Trump. Was that a merger that he has purports to any kind of support of?
Karoline (34:45):
It's not anything that we have a position on or anything we're commenting on. I know it's an idea that has been proposed by private industry, but it's not something the President or the White House have an opinion on or are weighing in on at this time. John? John, go ahead.
John (34:59):
Thanks a lot, Caroline. This is for Secretary Bessent. On Monday of next week, importers can start requesting claims for tariff refunds. And my understanding is $127 billion eligible for refunds. What's that process look like? How can a porter and an importer request such a refund going forward?
Treasury Secretary Scott Bessent (35:21):
That's not being run out of treasury. We would just be the pay master, so that's being run out of CPB.
John (35:27):
And so, explain that process. I understand you're not running. How does that process actually work? If you're an importer, you paid these tariffs, the Supreme Court found that those tariffs were illegal. What's the process for them to get back that money?
Treasury Secretary Scott Bessent (35:41):
Well, they would be in touch with the CPB. And I think the number you're quoting is the... So that's the amount who have already requested refunds. So they are already in the shoot and we'll see what the timeline is for that.
John (35:57):
Will that affect the US economy, all of those refunds coming out of the US Treasury?
Treasury Secretary Scott Bessent (36:02):
Again, we'll have to see what comes out and we'll have to see what the companies do with them. Just to be clear, just to be clear, thanks to the Supreme Court, some of this money's going back to China. So is that going to affect the US economy? I don't know.
Peter (36:17):
[inaudible 00:36:18] A question for us.
Karoline (36:22):
Danny, go ahead.
Peter (36:24):
Secretary, you were quoted as saying in an interview earlier this week that it was worth a bit of economic pain for international security. Is that this administration's message to American voters with high gas prices, that ahead of the midterms this year that it's worth the economic pain?
Treasury Secretary Scott Bessent (36:38):
Well, the message is the short term volatility for long term gain.
Karoline (36:47):
And Danny, if I could add to that, the president's been very clear. Again, as the secretary just said, this is a short term disruption for the long term strategic goal of the United States to ensure that the world's leading state sponsor of terror cannot obtain a nuclear weapon. That's a good thing for the American people. That's a good thing for people all over the world. And as the president and his economic and energy team have repeatedly stated, as soon as the operation and now the negotiations with Iran conclude and the Strait is reopened, we do expect gas prices to decrease.
(37:23)
And thank goodness we have a president and an administration that believes in American energy dominance in bringing down prices at the pump. Look at how gas prices decreased over the past year since this president was in office. It's a stark contrast to the previous administration and Democrats in this city, who believe in hampering our domestic energy industry, who believe in importing our most precious resources, who believe in implementing policies that created the worst inflation crisis in history.
(37:50)
So President Trump has built the greatest economy in the world before. He is doing it again. Of course, we have this short-term disruption, but again, it's for the long-term strategic goal of ensuring that these terrorists cannot possess a nuclear bomb. Jennifer. Jennifer.
Jennifer (38:05):
For Secretary Bessent. On the Russian oil, I know that the sanctions waivers have expired, but how much money did Russia benefit from that temporary sanctions rules? You initially said about two billion. Is that...
Treasury Secretary Scott Bessent (38:17):
It could have been two billion. We don't know. But again, let's think of a different world, where oil spiked to 150 and they would have made a lot more by doing that, by pushing the Russian barrels that were already on the water. They were going to be sold. They were going to China no matter what. We pushed them to our allies. We helped stabilize the oil price. And as you can see, there were doomsday scenarios. Oil's going to 150. It's going to 200, it's going to $250. West Texas crude for the front month delivery is about $92 or $93 now.
Karoline (38:57):
[inaudible 00:38:56] Thank you, everybody. I know we have two very busy cabinet secretaries with us here today. Before we do depart, just one final announcement. As you know this year, we celebrate America's 250th birthday. In honor of this historic occasion, President Trump and the Department of Interior will submit plans for the United States Triumphal Arc, which will be an architectural masterpiece to celebrate our history right here in Washington DC. This is a rendering of the arc for you. Thank you, Peter. It's quite beautiful, as you can see, and this monumental arc will beam at 250 feet tall in honor of 250 years and stand on ground that is currently empty green space in Memorial Circle on Columbia Island, a manmade island in the Potomac River managed by the National Park Service. The United States Triumphal Arc will be outfitted with beautiful artwork and depictions, celebrating the success of the American people over our 250-year history and the enduring triumph of the American spirit.
(39:58)
Long after everyone in this room is gone, our children and grandchildren will remain inspired by this national monument. Beginning construction this year on the architectural arc is a fitting way to commemorate the 250th anniversary of American independence. Great nations build beautiful structures that cultivate national pride and love of country, and this Triumphal Arc should be a project that all Americans of all political persuasions can support, because it's a monument for every American to celebrate 250 years of our nation's proud history. And again, the plans for this will be submitted tomorrow. We'll have many more announcements with respect to our 250th anniversary in the coming months as we look forward to the 4th of July. Thank you very much, everyone. Have a great day.