US Treasury Secretary Bessent Warns of Hard China Trade Negotiations, Describes Situation as an 'Embargo'

US Treasury Secretary Scott Bessent has termed current trade talks with China as a 'slog', noting that the current bilateral trade situation is akin to an embargo. While addressing a JPMorgan Chase investor meeting, Bessent explained that the US is not looking to decouple from China, but intends to have a rebalancing of trade relations.

 

Key Highlights:

✅ Trade Negotiations Halt: Bessent admitted that talks with China will be tough with reference to long-standing trade tensions.
✅ No Decoupling Plan: America does not intend to cut economic ties with China, but rather wants an equitable trade balance.
✅China's Preparations Doubted: Bessent questioned whether Beijing is ready to undertake genuine trade reforms.
✅ Market Impact: Investors are closely monitoring developments, as trade uncertainty continues to influence global markets.
✅'Huge Win' Perspective: Bessent suggested that successful negotiations could bring huge economic rewards, but progress is slow.

 

With US-China trade relations at a crossroads, policymakers are struggling to address intricate economic issues.

 

Source: CNBC, Economic Times, Business Standard