U.S. Treasury secretary hints at imminent global trade deals
The U.S. Treasury Secretary, Scott Bessent, announced on Monday in interviews with CNBC and Fox News that trade agreements with certain countries will soon be concluded. China is indicating its 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 the situation regarding U.S. tariffs
Many key trading partners have made "very good" proposals to avoid U.S. tariffs. The U.S. is also conducting very specific trade negotiations with Japan and other Asian countries, Bessent conveyed.
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 said that European countries are probably "in a panic" due to the increase in the euro's exchange rate. The business channel CNBC, to which Bessent gave the interview, reminds that after Trump's unpredictable decisions regarding tariffs, the euro gained nearly 10 per cent 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 stated.
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, emphasising good relations with President Xi Jinping, expressing hope for tariff reduction and a trade agreement with Beijing, and also stating that discussions on the topic are ongoing. He also stated that he wouldn't "play hardball" with China, but would be "nice" to them, but then 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 aeroplanes.
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.
