WASHINGTON, April 23 (Reuters) – U.S. Treasury Secretary Scott Bessent stated on Wednesday that he believes that excessively excessive tariffs between the U.S. and China must come down earlier than commerce negotiations can proceed however stated President Donald Trump wouldn’t unilaterally reduce tariffs on Chinese imports.
Bessent informed reporters on the sidelines of International Monetary Fund and World Bank annual conferences that de-escalation was crucial for the world’s two largest economies to rebalance their buying and selling relationship.
Asked whether or not that meant a discount within the 145% U.S. tariffs on Chinese items and China’s 125% tariffs on U.S. items, Bessent stated: “I think that has to be, because again, neither side believes that these are sustainable levels. As I said yesterday, this is the equivalent of an embargo and a break between the two countries in trade does not suit anyone’s interest.”
Bessent stated there have been no plans for Trump to maneuver first in decreasing tariffs to de-escalate a bitter U.S.-China commerce warfare, echoing feedback from White House spokesperson Karoline Leavitt that there can be “no unilateral reduction in tariffs against China.”
“I would not be surprised if they went down in a mutual way,” Bessent added.
Bessent stated that the Trump administration was working to revive tariff certainty by way of negotiations with dozens of nations, and he didn’t suppose that it could contain an “extended process,” as a result of nations will wish to keep away from the upper reciprocal tariffs that had been introduced on April 2.
Bessent additionally clarified earlier remarks a couple of two- to three-year timeline for a U.S.-China deal, saying that this referred to the complete rebalancing course of, not the negotiations for a deal, which ought to occur a lot quicker.
He stated earlier that it was time for China to rebalance its financial system towards consumption, and known as for a joint rebalancing, with the U.S. shifting in direction of manufacturing.
He stated the third quarter of this yr is a “reasonable estimate” for reaching readability on the final word stage of Trump’s tariffs, and stated he was not involved in regards to the IMF’s steep U.S. development downgrade by practically a full proportion level to 1.8% for 2025, a reduce due largely to Trump’s tariffs, retaliation and the uncertainty that they’re inflicting.
Bessent has set a aim for pushing U.S. development and argued that Trump’s financial insurance policies would propel development as much as 3% by way of extra vitality manufacturing.
“I’m not concerned about the IMF projections. And again, I think the third quarter would probably be a reasonable estimate that we will have clarity on tariffs,” Bessent stated. “We will have the tax bill done, and I would think that the deregulation, as I mentioned, was always going to be the slowest component, but that should start kicking in in the third and fourth quarters.”
Bessent stated talks with different nations had been persevering with, and {that a} take care of India was “very close.” The talks with India had been simpler as a result of the South Asian nation’s commerce obstacles had been principally excessive tariffs, with “no currency manipulation” and fewer advanced non-tariff commerce obstacles, he added.
India and China are among the many roughly 15 largest U.S. buying and selling relationships that the Trump administration is prioritizing for negotiations aimed toward decreasing the U.S. commerce deficit.
“I don’t think that the economy will rise and fall off of the Bahamas and Costa Rica negotiations,” Bessent stated.
Regarding talks with the EU, Bessent stated that digital companies taxes in nations corresponding to France and Italy aimed toward U.S. know-how platforms had been an issue that the Trump administration desires to include into negotiations.
Talks with Japan would come with a number of components together with “tariffs, non-tariff trade barriers, currency manipulation and government subsidy of labor and fixed capital investment,” Bessent stated, however they’d not embody particular targets for the dollar-yen trade price.
(Reporting by David Lawder; Editing by Franklin Paul and Andrea Ricci)
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