U.S. Treasury Secretary Scott Bessent announced plans to meet with his Chinese counterpart in the coming weeks to advance trade discussions between the world’s two largest economies, amid escalating tariff threats from President Donald Trump.
What Happened: “I’m going to be meeting with my Chinese counterpart at sometime in the next couple of weeks,” Bessent said in a CNBC interview on Monday. “We had good meetings in Geneva, in London. We both approached it with great respect.”
The announcement comes as Trump intensifies pressure on China through comprehensive tariff restructuring. On Sunday, Trump threatened an additional 10% tariff on any country aligning with BRICS anti-American policies, targeting the ten-nation alliance, including China, Russia, India, and Brazil.
Trump has signed “take it or leave it” letters to 12 countries detailing specific tariff rates, with Commerce Secretary Howard Lutnick confirming plans to finalize deals with ten major trading partners by July 9. Base tariffs of 10% remain in effect, with additional levies reaching up to 70% for some nations.
Bessent indicated potential for broader cooperation beyond trade issues. “I think there are things for us to do together if the Chinese want to do it,” he said. “So we will discuss whether we are able to move beyond trade into other areas.”
Why It Matters: The meeting comes as the Federal Reserve expresses caution about interest rate cuts due to potential inflationary impacts from escalating tariffs. Trump’s strategy has shifted from comprehensive negotiations to bilateral letters, which he considers more efficient than complex multilateral trade talks.
Only the United Kingdom has secured preferential treatment, with auto tariffs reduced from 27.5% to 10% and aerospace duties eliminated, benefiting companies like Rolls-Royce Holdings.
The bilateral discussions occur against a backdrop of broader U.S.-China tensions, including semiconductor export restrictions and ongoing negotiations over TikTok‘s U.S. operations under ByteDance ownership.
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