The American secretary of the Treasury, Scott Bessent, said in a Tuesday speech that the current confrontation against the prices against China was not sustainable and that he expects a “de -escalation” in the trade war between the two largest economies in the world.
But in a private speech in Washington for Jpmorgan Chase, Bessent also warned that talks between the United States and China had not yet officially started. US President Donald Trump has placed 145% import taxes on China, which was countered with 125% prices on American products.
Trump has placed prices on several dozen countries, which means that the stock market stumbles and interest rates are increasing on American debt while investors are concerned about slower economic growth and higher inflationary pressures.
The details of Bessent’s speech were confirmed by two people familiar with the remarks that insisted on anonymity to discuss it.
“I say that China will be an SLOG in terms of negotiations,” said Bessent according to a transcription obtained by the Associated Press. “None of the parties think that the status quo is sustainable.”
The S&P 500 stock market index increased by 2.5% after Bloomberg News initially announced Bessent’s remarks.
Trump recognized the increase in the stock market in the comments to journalists afterwards on Tuesday, but he saved confirmed if he too thought that the situation with China was not durable as Bessent had said to Hais.
“We are doing well with China,” said Trump.
Despite his high prices, Trump said he would be “very nice” for China and would not play hardball with Chinese President Xi Jinping.
“We will live together very happily and ideally work together,” said Trump.
The American president said that the final rate rate with China would decrease “substantially” of the current 145%.
“It will not be so high, will not be so high,” said Trump.
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The Trump administration met for interviews with counterparts from Japan, India, South Korea, European Union, Canada and Mexico, among other nations. But Trump has not shown any public indication that he plans to withdraw his reference rate at 10%, even if he insisted that he was looking for other nations to reduce their own import taxes and remove non -tariff obstacles which, according to administration
China warned other countries on Monday to conclude trade agreements with the United States that may have a negative impact on China.
“China firmly opposes any party, reaching an agreement at the expense of the interest of China,” the Chinese Ministry of Commerce said in a statement.
The White House press secretary, Karoline Leavitt, said that the Trump administration had received 18 proposals from other countries for trade agreements with the United States, adding that “all those involved want to see a trade agreement.”
Trump: “ I have no intention ‘
The uncertainty about the prices on the financial markets has also been amplified by Trump calling for the federal reserve to reduce his reference interest rate, the president saying that he could dismiss the president of the Fed Jerome Powell if he wanted.
Leavitt said Trump thinks that the Fed has held stable rates because he awaits the impacts of prices “in the name of politics, rather in the name of what is good for the American economy”.
Trump later said that he wanted Powell “early” in lower rates and that he had no plan to dismiss the Fed chair, despite his suggestion before.
“I have no intention of dismissing him,” Trump told journalists.
Powell said Trump’s prices created uncertainty as to slower growth and higher inflationary pressures, while the President maintains that inflationary concerns are essentially nonexistent.
The President maintains that energy and grocery prices decrease, so that the Fed should reduce its reference rates because inflation is no longer a threat to the US economy, Trump said. His remarks indicated that he was still planning to use the intimidation chair to put pressure on an American central bank which undertakes to withstand political pressure within the framework of its mandate to stabilize prices and maximize employment.
Trump’s frustration led him to publish on social networks last Thursday: “Powell’s termination cannot come quickly enough!”
The mandate of the Fed chair ended in May 2026.
Trump continued to broadcast his grievances about Powell on Tuesday, even if he said that the president of the Fed would remain at work despite the president’s conviction that inflation was no longer a problem.
“Everything is going down,” said Trump. “The only thing that has not dropped, but has not increased much is interest rates. And we think the Fed should lower the rate. We think it’s the ideal time to reduce the rate. And we would like to see our president to be early or on time, as opposed to late. The delay is not good.”
Trump again attacked Powell on his social account of truth on Monday, saying that “there is practically no inflation”.
The comment was built on a Trump statement last week who said he thought he could dismiss Powell, a decision that shook the financial markets and frightened investors that interest rates could be submitted to politics instead of economic fundamentals.
“If I want it, it will be released from there very quickly, believe me,” said Trump in the oval office last Thursday. “I’m not happy with him.”
The FED has maintained new reductions in its federal fund rate, which influences the money supply by fixing the interest rate that banks can be charged for day -to -day loans. This rate is indeed 4.33%, down entirely as a percentage since last August, because inflationary pressures seemed to be facilitated.
The FED initially increased this rate due to the doping of inflation during the presidency of Joe Biden, a by-product of the world economy recovering from the COVVI-19 pandemic and higher energy and food prices after Russia invaded Ukraine in 2022.
But Powell was also willing to challenge the president’s trade policies. He declared last week in a Chicago speech that Trump’s pricing policies would harm the American economy, a direct warning to a white house trying to sell import taxes as a long -term positive for the country.
“The level of price increases announced so far is considerably greater than expected, and the same goes for economic effects that will include higher inflation and slower growth,” Powell said at the Chicago Economic Club last week.
