Trade talks nearing conclusion as China signals tariff shift
The U.S. Treasury Secretary, Scott Bessent, announced on Monday in interviews with CNBC and Fox News that trade agreements with certain countries will be concluded soon. China is indicating a willingness to negotiate on tariffs, which is why he "is not worried about empty shelves" in America.
- I would guess that India would be one of the first trade deals we would sign. Vice President Vance was in India last week, talked about substantial progress. I have mentioned that the negotiations with the Republic of Korea have gone very well, and I think we've had some very substantial negotiations with our Japanese allies, said the Treasury Secretary.
treasury secretary comments on U.S. tariffs situation
Many key trading partners have made "very good" proposals for deals to avoid U.S. tariffs. The U.S. is also conducting very specific trade negotiations with Japan and other Asian countries, according to Bessent.
When asked if he intends to call his Chinese counterpart, he replied, "As I’ve repeatedly said, I believe it’s up to China to de-escalate because they sell five times more to us than we sell to them, so these 125% tariffs are unsustainable."
The Treasury Secretary also mentioned that European countries are probably "in a panic" due to the increase in the euro's exchange rate. CNBC, the business channel to which Bessent gave the interview, pointed out that after Trump's chaotic decisions regarding tariffs, the euro gained nearly 10 percent against the dollar.
- You’re going to see the [European Central Bank] start cutting rates to try to get the euro back down. Europeans don’t want a strong euro. We have a strong-dollar policy, Bessent added.
Trump's policies have caused investors to move away from the dollar to other safe currencies. However, a significant strengthening of the euro would negatively impact European exports.
Tense situation between China and the USA
Trump has recently changed his tone multiple times regarding China. He has emphasized good relations with China's President Xi Jinping, expressed hope for tariff reduction and a trade agreement with Beijing, and also stated that discussions are ongoing. He also stated that he wouldn't "play hardball" with China but would be "nice" to them, yet warned Beijing that he would not allow China to continue selling fentanyl precursors. He also suggested that Boeing should sue its Chinese partner for halting the import of ordered airplanes.
On Thursday, contrary to Trump's declarations, the Chinese Ministry of Foreign Affairs denied that any trade talks with the U.S. are ongoing and indicated that to start them, the "unilateral" tariffs imposed by Washington need to be lifted.
