Washington, D.C. — U.S. Treasury Secretary Scott Bessent conveyed optimism about potential tariff agreements with China following discussions with Chinese officials at recent International Monetary Fund meetings. Bessent noted that while there have been conversations about critical issues such as financial stability and global economic warnings, achieving a resolution on tariffs remains a complex challenge.
In a televised interview, Bessent acknowledged the mixed signals surrounding ongoing negotiations. He clarified that he had not confirmed any recent communications between President Donald Trump and Chinese President Xi Jinping. Trump had earlier asserted that discussions on tariffs were active, but China’s foreign ministry countered that the U.S. should cease causing confusion regarding the situation.
China’s Foreign Minister Wang Yi characterized the U.S. approach to tariffs as unilateral and aggressive, accusing certain countries of prioritizing their interests at the expense of global trade stability. Speaking in Kazakhstan at a regional meeting, Wang emphasized that Beijing would uphold international trading norms while seeking support from other nations.
Bessent emphasized the unsustainability of high tariffs for Chinese businesses and suggested that Beijing’s denial of ongoing negotiations is likely aimed at a domestic audience. He sees a path to de-escalation, which could pave the way for agreements on several key trade issues being discussed.
Despite the potential for progress, Bessent cautioned that reaching a trade agreement can be a lengthy process. He also noted that negotiations with other significant trading partners are advancing positively, particularly among Asian nations, and praised Trump’s strategic approach in leveraging negotiation dynamics.
Concerns are mounting among U.S. retailers, who have reportedly warned that impending tariffs could lead to empty shelves and increased prices. Reports indicate that Chinese fast-fashion retailer Shein has already begun raising prices on a wide range of products ahead of the anticipated tariffs, with significant price hikes reported in categories such as beauty and home goods.
Trump, in a social media post, maintained that tariffs would ultimately benefit American taxpayers, predicting substantial income tax reductions for many and claiming that job creation is already underway due to expanding businesses. He described the situation as a “bonanza” for the American workforce.
Additionally, U.S. Agriculture Secretary Brooke Rollins revealed that daily discussions are occurring with China regarding tariffs. She indicated that the administration is prepared to support American farmers if the trade conflict continues to negatively impact exports, particularly in commodities like soybeans and pork. Rollins expressed hope that a bailout would not be necessary, though preparations are being made just in case.
As the U.S. and China navigate these turbulent economic waters, the outcome of the negotiations remains uncertain, with both countries signaling a desire to find common ground while grappling with mounting challenges in the global trade arena.