Bessent says US will weigh China’s failure on ‘phase one’ trade deal

Treasury Secretary Scott Pessant said on Tuesday that the Trump administration will take into account China’s failure to comply with a commercial agreement from the first period of the president when a new trade deal ends.

Bessent was interviewed on “Kudlow” of the Fox Business Network after President Donald Trump raised the customs tariff for Chinese imports to up to 145 %, which led China to slap 125 % on US exports to the country.

Hosts Larry Kudlo asked whether the commercial deal for the first stage with China since 2020, which was agreed to end the American trade war with China at that time, can be used as a starting point or whether the administration will take negotiations with a new start.

“I think we have to take into account that they did not abide by the first stage deal, as you know, and I note with great interest that the Biden administration liked the definitions, but it did not implement the purchase agreements,” Pesen said.

Chinese caves on a 125 % tariff for the main American export after the White House expects that Beijing cannot keep up with it

Treasury Secretary Scott Payette said the “first stage” commercial deal could be treated in new negotiations with China. (Reuters / Elizabeth Franz / Reuters)

The commercial deal will buy the “first stage” signed in January 2020 from China $ 200 billion in US exports over the past 2020 and 2021, although it was much lower than those levels and was unable to import enough of the United States to meet the levels of import of the pre -trade war from 2017.

The commercial deal for the first stage was also distinguished by other agreements, such as China’s commitment to removing technical barriers to American agricultural exports, protecting the intellectual property rights of American companies and ending forced technology transfers.

“Since then, over the past four years, trade has not become more fair with China,” Bessin added. “President Trump believes that economic security is national security. We got a experimental test for that during Covid, when I think the Americans have been shocked to see the supply chain to see strategic things such as medicines, such as semiconductors, steel. Thus, one of the most important things we will do over the coming years is to fortify the supply chain.”

American definitions can cost China 5-10 million jobs, “responsibility” on Beijing, Pesin says

President Donald Trump and Chinese President Xi Jinping reached a commercial deal “the first stage” in 2020. (Xinhua / Ju Peng via Getty Images / Getty Images)

Bessent repeated that he believes that the customs tariff for China, one of the three largest commercial partners in the United States, is not sustainable, and both sides will eventually reach an agreement to reduce them.

“As I said many times, I think these high definitions are not sustainable. I think American buyers have made a great deal of pre -arrangement, and now factories in China have to close. I saw some very big estimates to lay down potential workers if these definitions are in place,” said Besent. “

He added, “We have a deficit with them.

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Kudlo, Treasury Secretary, asked whether there was any progress in negotiations with China on a commercial deal to alleviate the definitions.

Bess’s postponed to President Trump, saying that the president will participate in all commercial negotiations. Therefore, he will wait to allow him to announce these deals.