US Treasury Secretary Bessent: discussion will be on de-escalation

US Treasury Secretary Bessent: discussion will be on de-escalation

US Treasury Secretary Scott Bessent has indicated that the United States is poised to revisit the phase one trade deal with China and is confident that Beijing will be open to reaching a deal on tariffs. Bessent made these remarks during an interview with Fox Business Network on Thursday, May 6, 2025 [1].

In his interview, Bessent expressed optimism about the potential for de-escalation in trade tensions. He stated that the process will be multi-step, beginning with de-escalation and eventually focusing on a larger trade deal. He was particularly confident that China would be interested in reaching a deal, suggesting that the current tariffs are a significant burden for both countries [1].

Additionally, Bessent's testimony before the House subcommittee responsible for the Treasury Department's budget proposal highlighted the administration's efforts to negotiate trade deals with other countries. He indicated that deals could be announced as early as this week and that the negotiations are proceeding well, with around 80-90% of deals expected to be wrapped up by the end of the year [2].

However, Bessent acknowledged that the U.S. has not yet begun negotiations with China, contradicting previous claims from President Donald Trump. He emphasized that it is up to China to de-escalate the trade tensions, given that China sells more goods to the U.S. than the U.S. does to China [2].

In a broader context, Bessent's comments reflect the Trump administration's ongoing efforts to manage the U.S. economy amidst significant trade tensions. His statements underscore the administration's focus on reducing trade barriers and promoting economic growth through strategic negotiations.

References:
[1] https://english.alarabiya.net/News/world/2025/05/01/us-treasury-secretary-scott-bessent-confident-china-wants-to-reach-deal-on-tariffs
[2] https://www.usatoday.com/story/news/politics/2025/05/06/treasury-secretary-bessent-hearing-china-trade-deals/83475739007/