Trade Deal with China Likely Before November Reciprocal Tariff Deadline, Says Treasury Secretary Bessent
In a CNBC interview, U.S. Treasury Secretary Scott Bessent felt hope. He sees a trade deal with China on the way. He adds more talks will occur before the November deadline. The deadline triggers new reciprocal tariffs.
Anticipated Talks Ahead of November Deadline
Bessent stressed that U.S. and China talks are now productive. He said on Squawk Box, “We’ll be seeing each other again.” His words show that Chinese officials see a chance to agree. The talks follow months of tense debate and shifts in stance. They began on April 2 when former President Trump announced "liberation day" tariffs on many global partners, including China.
At first, the plan was to impose tariffs as high as 145% on Chinese goods. The measures were put on hold to keep talks open. This pause would have ended on August 12 but was stretched to November 10 by the Trump team, giving both sides more time to discuss.
Impact on Global Markets and Trade Deficit
Bessent said that U.S. trading partners worry because Chinese goods flood their markets. One partner remarked, “They don’t know what to do about it.” He described markets that are upset with the quick flow of imports.
Bessent noted that in 2024, the U.S.-China trade gap reached almost $300 billion. By July 2025, the gap dropped to $128 billion. U.S. Trade Representative Jamieson Greer projects a gap reduction of at least 30% this year. He expects the trade gap to shrink further in 2026. ### Aiming for Fair and Balanced Trade
Bessent said, “Our goal is to come into balance, to have fair trade.” The deal is meant to fix trade gaps. It also sets fair rules for commerce between the two large nations.
Tensions and talks go on. Global markets watch each move. The tariff pause shows that both sides want a solution. This change may start a new era in U.S.-China trade relations.
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