Bloomberg Talks Treasury Sec. Scott Bessent Talks Fed criticisms, trade talks
Jul 23, 2025
Scott Bessent, U.S. Treasury Secretary, provides insight into the complexities of U.S. trade negotiations, particularly with Japan and the EU. He highlights the unique strategies that led to Japan's deal with the U.S., emphasizing the importance of innovative financing. Bessent also addresses the dynamic tensions with China and its impact on future trade deals. Additionally, he discusses potential candidates to succeed Fed Chair Powell, hinting at a focus on diversity and effective leadership in navigating economic challenges.
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Trump's Tough Negotiation Wins Japan Deal
- President Trump's direct negotiation style helped close a tough trade deal with Japan.
- Despite difficult talks, his firmness won over the Japanese negotiators.
Innovative Financing Lowers Japan Tariffs
- The 15% auto tariff rate with Japan is linked to innovative financing from Japan.
- Japan proposed new equity, credit guarantees, and funding for U.S. projects as part of the deal.
Rebalancing U.S.-China Economic Roles
- The U.S. sees potential for a rebalancing with China towards consumption.
- China accounts for 30% of global manufacturing, which the U.S. views as unsustainable.