Bessent Backs US Financial Power as Foreign Policy Tool

U.S. Treasury Secretary Scott Bessent said the United States should make greater use of its financial power to support its foreign policy goals.

His comments point to a broader role for the Treasury as the Trump administration looks to use economic policy and financial tools alongside traditional diplomacy.

Speaking at an event at the SMU Cox School of Business, Bessent cited Argentina as an example of how U.S. financial resources can be used to support a government that Washington sees as a strategic partner.

He also praised Argentine President Javier Milei’s economic policies and said the U.S. could use its financial position more actively to strengthen international relations.

• Scott Bessent backs greater use of US financial power in foreign policy
• US Treasury seeks stronger role for financial tools in international relations
• Bessent highlights Argentina and Japan as examples of US economic diplomacy

Argentina Shows US Strategy

Bessent’s comments follow the United States’ multibillion-dollar support for Argentina last year, which was aimed at helping stabilise the country’s currency and support Milei’s economic programme. The assistance came as Argentina was dealing with significant economic challenges.

For Bessent, the case shows how financial assistance can serve a wider purpose than simply providing economic relief. It can also help Washington build stronger ties with governments whose policies and priorities are broadly aligned with those of the United States.

The approach could become especially important in Latin America. The Trump administration has been seeking to strengthen US influence in the region, and financial assistance could give Washington another way to deepen relationships with governments.

The administration has also taken a tougher position on Venezuela. Trump has increased pressure on the country through military and economic measures, citing concerns over drug trafficking, illegal immigration and national security.

The actions have drawn criticism from rights groups, which have questioned the scale and legality of some of the measures. The Trump administration, however, has defended its approach as necessary to protect U.S. interests.

Treasury Expands Global Role

Bessent also pointed to the U.S. relationship with Japan, particularly a joint intervention in currency markets on July 31. The two countries bought yen as they sought to limit a sharp decline in the Japanese currency and prevent wider disruption in global financial markets.

Bessent said the intervention also helped him better understand the thinking of Japanese economic officials and the Bank of Japan. The episode highlights how financial cooperation can strengthen ties between major economies while also helping address market instability.

The Treasury has increasingly become part of Washington’s broader economic diplomacy. Along with financial support and currency cooperation, the administration has used tariffs as a key tool in its dealings with other countries.

This approach gives the United States several ways to influence economic and political relationships without relying only on traditional diplomatic channels. For countries facing financial difficulties, U.S. support can offer important assistance, but it can also come with wider strategic considerations.

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Bessent’s comments suggest that the Trump administration sees America’s financial strength as an important part of its foreign policy strategy. As Washington continues to reshape its relationships with allies and other governments, the Treasury is likely to play a larger role in advancing the country’s economic and geopolitical interests.