Treasury Secretary Scott Bessent made fresh clarifications on the country’s evolving trade posture, particularly in relation to China, and the reshoring of critical supply chains.
What Happened: On Sunday, Bessent posted a video clip on X from his recent appearance on CNN's State of the Union with Jake Tapper. The segment focused on U.S.-China trade relations and Bessent's comments on the administration's push to reshore key industries linked to national security.
“Our goal is not to decouple from China, but to open markets and restore balance,” Bessent writes alongside the video excerpt. “We'll continue trading with China, especially in non-strategic goods, and at lower tariff levels,” he says.
In the clip, Bessent highlighted the administration's focus on restoring domestic production in industries deemed vital to national security. “During COVID, we realized that we had some very strategic shortfalls, whether it was medicines, semiconductors, steel,” he said. “Those are the industries we're working to bring back.”
Bessent reiterates in the video that they “don't want to decouple with China," and that “President [Donald] Trump actually wants to open up China for business.”
Why It Matters: This comes just a week after a truce was reached between the two countries in Geneva, when tariffs were rolled back to 30% from 145%.
During the interview, Bessent nonetheless issued a fresh warning to America’s biggest trading partners, saying that tariffs could soon snap back to their “reciprocal” levels seen during “Liberation Day,” if they fail to negotiate in good faith.
While speaking with Jake Tapper on Sunday, Bessent downplayed the Moody’s downgrading of U.S. Government debt, calling it a “lagging indicator.”
Photo Courtesy: Maxim Elramsisy On Shutterstock.com
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