Bessent: U.S. Seeks Strategic Decoupling from China, Sets 30% Tariff Floor and 54% Ceiling, Eyes Trump-Xi Call
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U.S. Treasury Secretary Scott Bessent has outlined the current stance on U.S.-China trade relations, stating that the U.S. is seeking a strategic decoupling from China for strategic necessities. However, he emphasized that neither the U.S. nor China wants a generalized decoupling, indicating a nuanced approach to their economic relationship.
Bessent described the recent tariff adjustments as an 'unfortunate escalation' with China, but noted that both sides have shown a willingness to avoid further escalation. He mentioned that the current tariff level on China, which includes a 20% fentanyl levy and a 10% base rate totaling 30%, is considered a floor, with the April 2 level of 54% as the ceiling. Trump viewed 80% as not being an embargo for China.
He stated that it is 'implausible' for tariffs on China to drop below 10%, signaling a firm stance on maintaining a minimum tariff threshold. Bessent also expressed hope for a Trump-Xi call in the coming weeks or months, suggesting ongoing dialogue to manage trade tensions. Both sides have shown 'great respect' during negotiations.
The U.S. has the option to revert to the April 2 tariff levels if necessary, indicating flexibility in response to China's actions. Bessent expressed optimism about the possibility of rebalancing together and hopes most trade and tariffs issues will be settled by year-end. His comments reflect a strategic approach to managing U.S.-China trade relations amidst ongoing negotiations.
Where are US tariffs on China now? We came out of 2018 with a tariff of 18%. Two rounds of 10% fentanyl in Feb. '25 and Mar. '25 took that to 38%. We went to 150% in Apr. '25 and - as of today - are back down to 48% (i.e. 18% from 2018 + 2 fentanyl rounds + 10% universal tariff). https://t.co/UJf5rYATWU
*BESSENT: APRIL 2ND LEVEL WOULD BE A CEILING FOR CHINA
*BESSENT: CURRENT TARIFF LEVEL FOR CHINA IS A 'FLOOR'
*BESSENT SAYS IT IS `IMPLAUSIBLE' CHINA TARIFFS GO BELOW 10%
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