
Bloomberg Talks US Treasury Secretary Scott Bessent Talks US-China Agreement
May 12, 2025
Scott Bessent, the US Treasury Secretary, dives into the recent agreement with China, marking a 90-day pause in tariffs. He discusses the intricate landscape of U.S.-China trade negotiations, the importance of fairness, and past agreements. The conversation also addresses the trade deficit and the necessity of recalibrating tariffs and supply chains. Additionally, Bessent highlights efforts to tackle the fentanyl crisis by managing precursor drug transportation, while projecting optimism for the administration's economic agenda through trade and deregulation.
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Pursue Strategic Decoupling
- Strategic decoupling involves tariffs and national will to protect key industries.
- The administration aims for self-sufficiency in semiconductors, medicine, and steel.
Trade Deficit Requires Two-Way Rebalancing
- The U.S. wants to reduce the trade deficit by rebalancing imports and exports with China.
- China should open its market more to U.S. products to help rebalance trade.
Phase One Agreement Follow-Up
- China fulfilled its phase one trade agreement obligations in 2020, but neglected them under Biden's administration.
- The prior agreement provides a structured roadmap to resume progress.

