Key Highlights
- Treasury Secretary Scott Bessent discusses a potential truce in U.S.-China trade negotiations.
- The threat of a 155% tariff on China has been removed, according to the Secretary.
- A deal on TikTok is finalized, with all details ironed out for President Trump and Chinese leaders to finalize.
- Secretary Bessent disputes concerns about America’s financial lifeline to Argentina affecting U.S. soybean sales to China.
Treasury Secretary Scott Bessent on Trade with China
Treasury Secretary Scott Bessent, in an interview with “Face the Nation,” addressed recent developments in U.S.-China trade negotiations and outlined the terms of a potential truce. According to Bessent, the threat of a 155% tariff on Chinese imports has been effectively removed.
“I think we had a very good two-day meeting,” said Bessent. “The threat of the 100% additional tariff is off the table.” The Secretary also stated that China has agreed not to initiate a worldwide export control regime, which was previously threatened for December.
Progress on TikTok and Other Trade Issues
The discussion turned to the details of a deal reached with TikTok. Bessent confirmed that “we reached a final deal on TikTok,” adding that all specifics are now finalized for President Trump and Chinese leaders to conclude in Korea.
“My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days,” Bessent explained. However, he noted that his role did not extend to the commercial side of the transaction.
Government Shutdown and Domestic Politics
Bessent addressed concerns about the ongoing government shutdown, stating that the issue will not affect President Trump’s ability to negotiate with China. He said, “I don’t think it’s going to hurt his international negotiating position,” referring to the Democratic-led Senate as a “global embarrassment.”
The Secretary also commented on the economic impact of the shutdown, warning that it could slow down air traffic and urging moderate Democrats to pass a clean continuing resolution.
Future Outlook for U.S. Economy
Regarding inflation, Bessent expressed optimism, stating, “Inflation is a composite number, and I think we are on a glide path to lower inflation over the coming months.” He noted that core inflation had edged up but was expected to cool off, citing energy and mortgage rates as factors contributing to affordability.
Bessent also addressed Russia sanctions, reiterating his belief that they would impact Russian oil profits significantly. “We’ve already seen India has done a complete halt of Russian oil purchases,” he said, adding that this could lead to further economic pressure on Putin’s regime.
In conclusion, Treasury Secretary Scott Bessent emphasized the progress made in U.S.-China trade negotiations and outlined several ongoing issues, including the government shutdown, which he believed would not significantly impact international relations. The Secretary highlighted the importance of maintaining focus on long-term economic goals despite current domestic challenges.
