

US Treasury Secretary Scott Bessent Talks US-China Agreement
May 12, 2025
Scott Bessent, the US Treasury Secretary, dives into the recent agreement with China, marking a 90-day pause in tariffs. He discusses the intricate landscape of U.S.-China trade negotiations, the importance of fairness, and past agreements. The conversation also addresses the trade deficit and the necessity of recalibrating tariffs and supply chains. Additionally, Bessent highlights efforts to tackle the fentanyl crisis by managing precursor drug transportation, while projecting optimism for the administration's economic agenda through trade and deregulation.
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New Tariff Engagement Mechanism
- The U.S. and China did not have an effective engagement mechanism for tariffs until now, leading to escalation.
- Both sides agree to avoid generalized decoupling but U.S. will strategically decouple in key national security industries.
90-Day Tariff Pause Explained
- The recent agreement is a 90-day pause with tariffs lowered but still above zero.
- Negotiations also target non-tariff barriers, currency, and subsidies for a comprehensive trade resolution.
Tariffs Set a Floor and Ceiling
- The current tariff levels set the floor, not a ceiling, meaning tariffs won't go below these rates.
- The April 2nd tariff rate (34%) acts as a ceiling, preserving room for negotiation adjustments.