Washington, D.C. — Treasury Secretary Scott Bessent emphasized the need for China to take the initiative in resolving ongoing trade tensions during an interview on CNBC’s “Squawk Box.” He pointed out that the imbalance in trade—where the United States imports significantly more from China than it exports—necessitates a shift in China’s approach. “They need to de-escalate,” Bessent said, underlining that the current high tariffs of 120% to 145% are not sustainable.
His comments arrive at a time when markets are closely monitoring the unfolding of tariffs following President Donald Trump’s announcement on April 2 about sweeping global tariffs. Shortly thereafter, Trump maintained a 10% tariff across the board but promised to delay more aggressive measures against specific trading partners for 90 days.
Bessent noted that the United States is making strides in trade negotiations, identifying India as a key player that could possibly sign a deal in the near future. He mentioned there are 15 to 18 significant trading relationships currently under review, with various countries already presenting appealing proposals. “I would guess that India would be one of the first trade deals we would sign,” he said, urging observers to stay tuned for developments.
The secretary also voiced concerns about the repercussions of trade disputes, particularly for European nations. He expressed that European officials might be feeling anxious about the strength of the euro relative to the U.S. dollar, especially as the euro has appreciated nearly 10% this year after hitting close to parity in January. Bessent predicted that the European Central Bank may resort to cutting interest rates to weaken the euro, as a strong currency is not in their interest.
Despite the rising tensions, the administration’s signals regarding trade negotiations have been inconsistent. Trump stated last week that U.S. officials were in talks with their Chinese counterparts during their visit to Washington. However, other reports suggested that no negotiations occurred, with the officials primarily attending meetings for the World Bank and the International Monetary Fund.
Bessent reiterated the administration’s commitment to keeping negotiations private, distancing them from media scrutiny. The focus, he insisted, remains on finding actionable solutions rather than engaging in public discourse about ongoing discussions.
The landscape of international trade continues to evolve, influenced heavily by these negotiations. Stakeholders from various economic sectors will be closely watching for updates, particularly regarding agreements that could reshape the U.S.’s trade policies and fiscal landscape in the coming months.