U.S. Secretary Bessent asserts American upper hand in tariff struggle amid China's ailing economy
Title: U.S.-China Trade: Balancing Act or Tit-for-Tat? A Look at the Latest Developments
Subtitle: A recap of the ongoing trade tussle between the U.S. and China, focusing on recent events, tariffs, and the future of rebalancing.
Americans have been following the intricate dance between US Treasury Secretary Scott Bessent and China with bated breath. Bessent recently gave an update on potential tariff discussions with China, reminding the Asian powerhouse of its impending economic downfall if it fails to rebalance its trade practices.
"Beijing's seeing some dismal [Gross Domestic Product] figures these days, and job losses could reach a whopping 5 to 10 million," Bessent declared on "Mornings with Maria." He added that China's economy is rapidly slowing down, making a de-escalation crucial. "They've got the most unbalanced, unreasonable economy in history, and they need to even things out."
Bessent, who agrees with President Donald Trump's April 2 executive order implementing reciprocal tariffs on various countries, emphasized that China's 125% tariff on US imports and America's 145% tariff on Chinese imports are untenable.
Trump notably stated that tariffs are providing an incentive for US investment while harming China. Last week, Chinese officials denied any talks or negotiations regarding tariffs, but Bessent indicated that a significant breakthrough could occur between these trading rivals.
"We're making strides towards rebuilding US manufacturing, something that's been weak for decades," Bessent continued. "China, on the other hand, needs to transition to increased consumption."
"If we can strike a balance, that'll be the game-changer. However, we'll continue to bring down unfair trade barriers and make sure China adheres to existing agreements," he assured.
In January 2020, the Economic and Trade Agreement between the US and China, a phase one negotiation, was passed, focusing on intellectual property, technology transfers, and goods and services. Trump remains confident that the Chinese will seek a deal.
"Every aspect of our economic relationship is up for discussion. I'm optimistic that the Chinese will want to negotiate," Bessent asserted. "China's primed to sell cheap goods to the US, supplying around five times more goods than they buy from us. If orders aren't placed for the holiday season, it could cripple Chinese factories and their economy."
- The ongoing trade tussle between the U.S. and China, highlighted by recent tariff discussions, is of great interest to Americans.
- Secretary Bessent recently warned China of a potential economic downturn if it does not rebalance its trade practices.
- Bessent highlighted the dire economic situation in China, citing potential job losses of 5 to 10 million.
- Bessent believes China's economy is slowing down, and a de-escalation is essential.
- Bessent supports President Trump's policy of reciprocal tariffs, pointing out the unsustainable 125% tariff on US imports by China and the 145% tariff on American imports to China.
- Trump believes that tariffs are providing an incentive for US investment while harming China.
- Bessent foresees a significant breakthrough in relations between these trading rivals, focusing on rebuilding US manufacturing and increasing Chinese consumption, with the aim of striking a balance. However, he promises continued efforts to bring down unfair trade barriers and ensure China adheres to existing agreements.
