U.S. Treasury Secretary Scott Bessent said Friday he's optimistic about reaching a trade agreement with China as President Donald Trump launched a sweeping new round of tariffs affecting dozens of countries.
Bessent Says US-China Trade Talks Are Advancing
Bessent briefly posted on X, formerly Twitter, that this week's trade talks in Stockholm made meaningful progress toward a U.S.-China deal, reported Reuters.
The post, which was deleted and reposted due to an apparent technical issue, stated: "This week’s negotiations in Stockholm have advanced our talks with China, and I believe that we have the makings of a deal that will benefit both of our great nations."
He added, "I am optimistic about the path forward."
In a Thursday interview with CNBC, Bessent added, "It's not 100% done," but confirmed U.S. negotiators "pushed back quite a bit" in the latest round of discussions. He highlighted that President Trump holds the final authority on any deal.
China Faces Aug. 12 Deadline To Strike Long-Term Deal
China faces an Aug. 12 deadline to finalize a long-term tariff agreement with the U.S., following preliminary deals reached in May and June to de-escalate the ongoing trade war and avoid further restrictions on rare earth mineral exports.
Trump Escalates Global Trade War With New Tariffs
Meanwhile, President Trump signed an executive order on Thursday imposing fresh tariffs ranging from 10% to 41% on 69 countries, citing national security, fentanyl trafficking and unfair trade practices.
Canada, the U.S.'s largest trading partner, saw tariffs on many goods rise from 25% to 35%, with Trump accusing Ottawa of failing to cooperate on fentanyl enforcement.
Brazil, India, and Switzerland were also hit with new tariffs, while Mexico secured a 90-day reprieve after President Claudia Sheinbaum spoke directly with Trump.
Experts Warn Of $500 Billion Hit To China If No Deal Is Reached
According to the Observatory of Economic Complexity, the failure to reach a U.S.-China deal by the deadline could cut Chinese exports to the U.S. by nearly $500 billion by 2027.
Former Commerce Secretary Wilbur Ross has cautioned that the U.S.-China trade war is "far from over," while economist Carlos Gutierrez said, "Protectionism doesn't protect. It strips a nation of its vitality."
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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