Treasury Secretary Scott Bessent has called on China to take proactive steps towards easing trade tensions while expressing optimism over trade deals with other countries.
What Happened: Bessent pointed out China’s higher export rate to the U.S. as a key factor contributing to the current tariff imbalance while speaking to CNBC. “They sell five times more to us that we sell to them,” stated the Treasury Secretary. He also termed the trade relations with China “complicated.”
Bessent also shed light on the progress of U.S. trade negotiations, hinting at a potential deal with India. "I would guess that India would be one of the first trade deals we would sign. So watch this space," stated Bessent.
The Treasury Secretary is also hopeful of trade deals with other countries, including Japan. "We've had many countries come forward and present some very good proposals, and we're evaluating those," he said.
He pointed out that the euro has strengthened against the U.S. dollar since trade tensions began, indicating that European countries are likely worried about the situation.
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Why It Matters: Bessent’s call for de-escalation comes amidst a series of significant developments in the global trade sphere. China has denied any ongoing trade talks with the U.S., but it has reportedly begun exempting some U.S. imports from high tariffs, indicating a possible easing of trade tensions. This move could potentially pave the way for further negotiations and a more balanced trade relationship between the two nations.
Meanwhile, Vice President JD Vance, last week, announced finalized terms for a trade deal with India, aiming to double bilateral trade to $500 billion by the end of the decade. This deal is expected to focus on job creation, resilient supply chains, and prosperity for workers in both nations.
The developments come in the wake of President Donald Trump‘s recent global duties announcement, which has stirred uncertainty in the markets. Despite this, Trump has opted to maintain a 10% tariff across the board, while delaying harsher levies against individual trading partners for 90 days.
Invesco QQQ Trust, Series 1 QQQ declined 7.26%, while the SPDR S&P 500 ETF SPY lost 5.69% on a year-to-date basis, amid tariff uncertainties.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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