Treasury Secretary Scott Bessent said Monday it is “up to China” to de-escalate President Trump’s trade war with Beijing, pointing to its export-heavy economy.
Mr. Bessent, speaking to CNBC, put the onus on China while repeating his belief that tit-for-tat tariffs exceeding 100% on each other’s imports cannot continue.
“I believe that it’s up to China to de-escalate because they sell five times more to us than we sell to them. And so, these 125%, 145% tariffs are unsustainable,” he said.
Mr. Bessent weighed in as neither side in the trade war seemed willing to budge.
Mr. Trump suggested in a recent Time interview that Chinese President Xi Jinping reached out to him, but the Chinese side said that is not true.
“The Chinese business model is predicated on selling subsidized goods into the U.S.,” Mr. Bessent said Monday. “It’s just not a long-term business strategy for them. So, I am sure that they will come and want to de-escalate.”
The U.S. and China are in a stalemate as big retailers and farmers brace for the impact of high tariffs. CEOs from Walmart and Target recently warned Mr. Trump that tariffs will disrupt supply chains and might lead to empty shelves.
The Agriculture Transportation Coalition, a trade group, said Chinese buyers are starting to cancel orders — a major hit to U.S. farmers. The fallout stems from Mr. Trump’s decision on April 2 to impose a 10% tariff on all imports and heftier levies on countries that sell plenty of products to U.S. consumers but don’t buy nearly as much from American producers.
The White House is pointing to progress in negotiating down trade barriers with countries that received a 90-day pause in tariffs because they decided to strike deals.
“Put China to the side. That’s a more complex negotiation,” Mr. Bessent told CNBC. “With the other 17, especially with the other Asian countries, we’ve had many countries come forward and present some very good proposals, and we’re evaluating those.”
He said Japan and India are among the major economies that could reach an agreement with the U.S. soon.
“I would guess that India would be one of the first trade deals we would sign,” the secretary said. “So, watch this space.”
