In a recent update on U.S.-China trade relations, Treasury Secretary Scott Bessent clarified that President Donald Trump has not made any unilateral commitments to reduce tariffs on China. During a press conference following his speech at the Institute of International Finance event in Washington, Bessent was asked if Trump had proposed any unilateral tariff reductions. His response was clear: “Not at all.”
Current Tariff Dynamics
Bessent emphasized that neither side seems to find the existing tariff levels feasible. He expressed that it wouldn’t be surprising if tariffs decreased through mutual agreements in the future. Trump’s prior comments hinted at a significant reduction in tariffs, stating they “will come down substantially but it won’t be zero.” He also mentioned his intention not to “play hardball” with Chinese President Xi Jinping.
Broader Trade Considerations
Beyond tariffs, Bessent pointed out that the Trump administration is examining several other aspects of trade with China. These include:
- Non-tariff barriers
- Government subsidies
He noted that the relationship between Washington and Beijing remains strong at the highest levels, although there is no set timeline for further engagements. According to Bessent, a complete rebalancing of trade could take two to three years.
Future Trade Agreements
In a separate statement, Trump reiterated the U.S. commitment to achieving a fair trade deal with China. Bessent also highlighted that the U.S. is nearing a trade agreement with India. He clarified that a satisfactory arrangement does not necessarily equate to a formal trade document, suggesting that initial agreements with trading partners will likely be broad frameworks instead of detailed contracts.
In summary, while the U.S. and China navigate complex trade dynamics, the focus is shifting towards broader considerations beyond tariffs. This evolving landscape could redefine trade relations in the coming years, especially as the U.S. seeks equitable agreements with both China and India.
