#TariffsPause
Amid ongoing trade disagreements between Washington and Beijing, U.S. Treasury Secretary Scott Bessent outlined the American administration's position on the matter. According to recent statements from Bessent, the U.S. government maintains contact with China at all levels; however, to de-escalate the trade dispute caused by a significant imbalance, it is Beijing that must take the first steps.
Bessent noted a significant trade imbalance, pointing out that the volume of Chinese goods sold in the U.S. is five times greater than the volume of American goods supplied to China, which he believes makes the existing high tariffs unsustainable. He also interpreted China's actions to lift tariffs on certain goods as a sign of Beijing's interest in de-escalation.
The U.S. Treasury Secretary mentioned that the U.S. has a 'ladder of escalation' that could potentially include 'embargoes,' but emphasized Washington's reluctance to implement such measures.
According to Bessent, the United States is currently focused on concluding trade agreements with 15-17 other countries, temporarily putting the China direction on the back burner. He suggested that a trade agreement with India could be announced among the first.
In addition, Bessent reported on meetings between American officials and their Chinese counterparts in Washington during the spring meetings of the IMF and World Bank. The discussions concerned 'financial stability' issues; however, the Secretary did not specify whether trade negotiations were addressed during these meetings.