During a press briefing at the White House, he expressed concerns that the ongoing tariffs on Chinese imports could have severe repercussions for the Asian economy. He indicated that if the current tariff policies persist, they may lead to an unsustainable situation for China’s market.
Bessent stated, “I believe that over time, the tariffs imposed on China will prove to be unsustainable for their economy,” warning that maintaining these tariffs could result in substantial job losses, potentially affecting up to 10 million positions. He also pointed out that even a reduction in tariffs could still impact around 5 million jobs.
Bessent highlighted the significant trade imbalance, noting that the U.S. imports nearly five times the amount of goods from China compared to what it exports back. “The responsibility lies with them to remove these tariffs, as they are not sustainable for their economy,” he remarked, presenting a complex challenge for Chinese policymakers as they consider the economic implications of the tariffs.
This discussion is set against the backdrop of President Trump’s early April announcement of extensive tariffs aimed at several countries, which his administration accused of engaging in unfair trade practices. Shortly thereafter, tariffs on Chinese goods surged to 145%, while reciprocal tariffs for other nations were temporarily reduced to 10%. Bessent also alluded to a potential trade agreement with India and possible deals with other Asian countries, suggesting proactive diplomatic efforts.
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“They have been the most willing to negotiate,” he noted, following Vice President JD Vance’s earlier talks with Indian Prime Minister Narendra Modi, which seemed to bode well for future economic collaboration. After Vance’s visit to India, a statement was issued highlighting the significant advancements made towards a trade agreement that aligns with the economic objectives of both nations.