Bessant Interview with CNBC
"China Sells Five Times More Products to the US Than We Sell to China"
Trade Talks with South Korea "Going Very Well"
U.S. Treasury Secretary Scott Bessant stated on April 28 (local time) that easing U.S.-China trade tensions "depends on China." He assessed that trade talks with South Korea are progressing smoothly and predicted that the first trade agreement with India is likely to be signed within a few days.
In an interview with CNBC that day, Secretary Bessant said, "China sells five times more products to the United States than we sell to China." He added, "Therefore, these 120% and 145% tariffs are unsustainable."
Currently, the United States imposes a total tariff of 145% on China, combining a 25% tariff on fentanyl and a 125% reciprocal tariff. China is imposing a 125% retaliatory tariff on the United States. In this context, President Donald Trump has been urging China to engage in dialogue on a daily basis.
Secretary Bessant evaluated China's exemption of tariffs on certain products as a sign of its willingness to ease tensions. Previously, China had imposed a 125% ultra-high tariff on eight types of U.S. semiconductors, excluding memory chips, since April 12, but it was recently reported that these tariffs have been withdrawn. Companies will also be reimbursed for tariffs already paid.
He said, "I have a ladder in my back pocket to escalate tensions, but I sincerely hope not to use it," referring to export bans as a possible measure that could heighten tensions.
Secretary Bessant stated that trade negotiations are currently underway with 15 to 17 countries, with China set aside for now. He said that negotiations with each country have made progress and that a potential agreement with India could be reached within a few days.
He said, "Many countries have made very good offers, and we are evaluating them," adding, "We expect to sign our first trade agreement with India. Stay tuned."
Regarding negotiations with South Korea, he stated that they "have been going very well." However, he did not mention any specific grounds for this assessment.
On April 9, the United States granted a 90-day tariff waiver to countries other than China just 13 hours after fully implementing reciprocal tariffs. The universal 10% tariff on all trading partners remains in effect, but the implementation of additional country-specific reciprocal tariffs has been temporarily suspended. Since then, the United States has been conducting trade negotiations with each country during the waiver period. However, it is reported that the main focus has been on reaching broad, principled agreements first, while major contentious issues have been postponed for later discussion.
Secretary Bessant also commented on the recent strengthening of the euro.
He said that European countries "must be in a panic" over the euro's strength against the U.S. dollar and predicted that the European Central Bank (ECB) will begin cutting interest rates to weaken the euro. He added, "Europeans do not want a strong euro," and emphasized, "We are maintaining a strong dollar policy."
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