- Treasury Secretary Scott Bessent rejected claims of unilateral U.S. tariff cuts on Chinese imports, emphasizing that the 145% U.S. and 125% Chinese tariffs are unsustainable and require mutual reduction through high-level talks between Presidents Trump and Xi.
- The Trump administration is pursuing trade deals with 14 countries, with Bessent noting significant progress toward an agreement with India, alongside a focus on resolving tariffs and passing a new tax bill by the third quarter.
- Post-tariff and tax clarity, the administration plans to prioritize deregulation, aiming to bolster domestic growth while strategically reshaping U.S. global trade relationships.
Treasury Secretary Scott Bessent has firmly rejected claims that the Trump administration is contemplating unilateral reductions in the 145% tariffs imposed on Chinese imports. Speaking to reporters on Wednesday, Bessent dismissed a Wall Street Journal report suggesting the administration might slash these duties by more than half or adopt a tiered approach to ease tensions with China. He emphasized that no such discussions are underway and that President Trump has made no unilateral offer to de-escalate the trade standoff. Instead, Bessent underscored the need for mutual action, noting that the current tariff levels – 145% on Chinese goods and 125% on U.S. goods – are unsustainable for both nations. He described the situation as akin to an embargo, detrimental to the economic interests of both countries, and suggested that any reduction in tariffs would require reciprocal steps following high-level talks between President Trump and Chinese President Xi Jinping.
Bessent’s comments reflect a broader strategy within the Trump administration to recalibrate global trade dynamics while maintaining a firm stance in negotiations. The administration is not solely focused on China but is actively pursuing trade agreements with 14 other countries. Notably, Bessent highlighted progress with India, stating that the U.S. is “very close” to finalizing a deal, a sentiment echoed by Vice President JD Vance. This multi-front approach signals an ambition to reshape U.S. trade policy comprehensively, leveraging bilateral agreements to strengthen economic ties and reduce reliance on adversarial trade relationships.
Looking ahead, Bessent outlined a timeline for the administration’s economic priorities, expecting clarity on tariffs and a new tax bill by the third quarter of the year. Once these are resolved, the focus will shift to deregulation, a key pillar of the administration’s agenda to stimulate domestic growth. The emphasis on mutual tariff reductions with China, coupled with simultaneous negotiations elsewhere, suggests a calculated effort to balance assertive trade policies with pragmatic deal-making. Bessent’s insistence on top-level talks between Trump and Xi further indicates that any resolution with China will hinge on direct, leader-to-leader diplomacy, potentially setting the stage for a broader reconfiguration of U.S.-China economic relations.
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