U.S. secures trade deals; China talks easing tariff tensions
U.S. Treasury Secretary Scott Bessent announced in interviews with CNBC and Fox News on Monday that trade agreements with certain countries will be finalized soon. He also mentioned that China is signaling a willingness to negotiate on tariffs, which is why he is "not worried about empty shelves" in the United States.
The first trade agreements may be signed this week or next week. One of these will be a "deal with India," and President Donald Trump will be deeply involved in each of these agreements. Furthermore, all levels of the government in Washington are maintaining contact with Beijing, the Treasury Secretary said.
Treasury Secretary comments on the situation regarding U.S. tariffs
Many key trading partners have made "very good" proposals to avoid U.S. tariffs. The U.S. is also conducting "very specific" trade negotiations with Japan and other Asian countries, Bessent conveyed.
When asked if he intends to call his Chinese counterpart, he replied, "We'll see what happens. Maybe they'll call me someday. I believe that China should de-escalate the trade war because they sell us five times more than we sell them."
The Treasury Secretary also mentioned that European countries are likely "in a state of panic" due to the increase in the euro's exchange rate. CNBC, which aired Bessent's interview, notes that after Trump's chaotic decisions regarding tariffs, the euro gained nearly 10 percent against the dollar.
Bessent explained that the European Central Bank is expected to start lowering interest rates in an effort to weaken the euro, as a strong euro is not in Europe's interest. Meanwhile, the United States maintains a policy supporting a strong dollar.
Trump's policies have prompted investors to move away from the dollar to other safe currencies. However, a significant strengthening of the euro would negatively impact European exports.
Tense situation between China and the USA
Trump has recently shifted his tone multiple times regarding China. He has emphasized good relations with China's President Xi Jinping, expressed hope for tariff reduction and a trade agreement with Beijing, and stated that discussions on the topic are ongoing. He also said that he wouldn't "play hardball" with China, but would be "nice" to them, yet he warned Beijing that he would not allow China to continue selling fentanyl precursors. He also suggested that Boeing should sue its Chinese partner for halting the import of ordered airplanes.
On Thursday, contrary to Trump's declarations, the Chinese Ministry of Foreign Affairs denied that any trade talks with the U.S. were ongoing and indicated that they could not start until the "unilateral" tariffs imposed by Washington were lifted.
