US Treasury Secretary Bessent signals agreement on 'tariffs'

Bessent spoke at an American Bankers Association event held in the capital, Washington.

Pointing out that there is some uncertainty in the markets, Bessent remarked, "But in general, the companies I talk to tell me that the economy is very solid. We received very good employment figures last Friday. So I think we are in pretty good shape."

Bessent stated that other countries should not retaliate, reminding that if there is no retaliation, the tariff levels announced last week are the ceiling.

Emphasizing that many countries want to negotiate with the US on tariffs, Bessent said that US President Donald Trump has spoken with the leaders of Japan and South Korea, and that a delegation from Vietnam has also arrived.

Pointing to China's retaliations, Bessent said, "But unfortunately, the biggest culprit in the global trading system in terms of escalation is China, and they are the only country that is escalating."

WARNING TO THE EU ON CLOSER TIES WITH CHINA

Criticizing Spanish Prime Minister Pedro Sanchez's remarks on the European Union (EU) moving closer to China, Bessent warned, "That would be cutting your own throat."

Bessent stated that they could likely reach an agreement with allies, adding, "They are good allies militarily, but they are not perfect economically. We can then approach China as a group."

Stating that tax bill negotiations are also going better than expected, Bessent emphasized that they want to de-leverage the public sector and make the private sector the engine of growth again.