U.S. Treasury Secretary: 145% Tariffs on China Unsustainable, Seeks Trade Deal

U.S. Treasury Secretary Scott Bessent has repeatedly emphasized that the 145% tariff imposed on Chinese imports is not a sustainable long-term solution. In various interviews and speeches, Bessent has acknowledged the economic impracticality of such high tariffs, describing them as effectively an embargo. He has expressed confidence that the tariff impasse between the world's largest economies will eventually be resolved, with a focus on reaching a trade agreement that benefits both sides.

Bessent's statements come at a time when financial markets are closely watching the ongoing trade negotiations between the U.S. and China. The high tariffs have raised concerns about the potential long-term impact on global trade and economic stability. Bessent has been clear that the tariffs are not meant to be permanent and that he expects a de-escalation in the trade tensions. He has also put the responsibility for reaching a trade agreement on China, indicating that a "big deal" is possible if Beijing is willing to make significant concessions.

The Treasury Secretary's remarks have been consistent in highlighting the unsustainability of the current tariff levels. He has dismissed claims that the tariffs will have a lasting positive impact on the U.S. economy, instead focusing on the need for a mutually beneficial trade agreement. Bessent's comments have been seen as a signal that the U.S. is open to negotiations and willing to work towards a resolution that avoids prolonged economic disruption.

In an interview, Bessent acknowledged the economic viability of the 145% tariffs, stating that they are not a viable long-term solution. He has also expressed optimism about the potential for a trade deal, suggesting that there is an opportunity for a significant agreement if both sides are willing to compromise. Bessent's statements reflect the administration's stance on the trade war, emphasizing the need for a balanced and sustainable approach to trade relations with China.