US Treasury Secretary Scott Bessent pointed out that present tariffs are unsustainable and accused China of lowering trade tensions. Along with predicting European rate cuts to control the rising euro, he also mentioned India as a possible first trade deal.
US Treasury Secretary Scott Bessent emphasized that China bears the obligation for de-escalating trade tensions and placed the onus of a possible trade agreement on China. In an interview with CNBC, Bessent pointed out that the existing tariffs of 120% to 145% are unsustainable because China sells five times as much to the United States as the other way around.
He added that India is a leading candidate for a possible trade agreement, and the U.S. has received several offers from other nations. “I would guess that India would be one of the first trade deals we would sign,” said Bessent.
According to Bessent’s remarks, the European Central Bank may soon begin lowering interest rates in an effort to combat the strong euro and support the U.S. dollar policy. He noted that the strength of the euro, which has increased by almost 10% versus the dollar this year, could worry European countries.
These comments follow President Donald Trump’s declaration of broad worldwide tariffs in early April, which has increased market skepticism. Bessent emphasized the progress made in negotiations, highlighting India as one of the important countries in discussions for new trade deals, despite the persistent trade tensions.
