Squawk Pod Treasury Secretary Scott Bessent on the 90 Day Pause 5/12/25
May 12, 2025
Scott Bessent, the U.S. Treasury Secretary, shares insights from the recent U.S.-China trade negotiations, revealing a pivotal 90-day pause on tariffs. He emphasizes the importance of ongoing dialogues and strategic decoupling to enhance supply chain resilience. Phil LeBeau, CNBC's auto and airline industry expert, discusses the chaos at Newark Airport, including ground delays and communication breakdowns affecting airlines. Together, they explore the broader implications of trade dynamics and the challenges within the transportation sector.
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China's Dual Circulation Challenge
- China uses "dual circulation" to produce excess goods, consuming domestically and exporting the surplus globally.
- U.S. negotiations aim to prevent China from flooding other markets by leveraging trade agreements with third countries.
Fentanyl Cooperation Focus
- U.S. and China are serious about combating fentanyl flow, with specialized security experts involved.
- The focus is on stopping precursor drugs to curb fentanyl-related deaths in the U.S.
Non-Tariff Barriers Are Key
- The main U.S. challenge is tackling non-tariff barriers and state subsidies in China, not just tariffs.
- Opening China fairly for American businesses is a key goal of ongoing trade talks.