us treasury hints at china trade breakthrough

2025-04-23 general

Washington, Wednesday, 23 April 2025.
us treasury secretary scott bessent suggested a possible trade agreement with china. this comes as ray dalio voices concerns about trump’s tariffs. bessent’s statement signals a move towards more balanced trade relations. amid ongoing tariff disputes, the us considers reducing tariffs from 145% to between 50% and 65%. bessent stressed collaboration, noting ‘america first’ doesn’t mean ‘america alone’. china has warned nations against limiting trade to gain us tariff exemptions, promising countermeasures.

Market reaction to potential trade deal

The stock market showed positive reactions following Bessent’s remarks [8]. The S&P 500, for example, increased by 2.5% after a broad market selloff occurred on Monday [8]. Bessent’s closed-door comments to investors indicated that the tariff standoff with China is unsustainable [8]. This spurred optimism among investors, suggesting that de-escalation could be on the horizon [7]. Such developments are closely monitored by investors as they directly influence market stability and growth prospects [GPT].

Expert opinions and analysis

Bridgewater founder Ray Dalio previously voiced concerns regarding President Trump’s tariff policies, cautioning about potential sharp economic fallout [2]. Treasury Secretary Bessent has acknowledged these concerns [2]. Bessent expects a ‘de-escalation’ in the U.S.-China tariff dispute soon [2]. Trade analyst Dr. Emily Bessent suggests the current administration aims to balance protecting U.S. interests and preventing a full-scale trade war [5]. These expert opinions highlight the complexities and potential economic impacts of the ongoing trade negotiations [GPT].

China’s stance and potential countermeasures

China has expressed strong opposition to any trade agreements that compromise its interests [7]. The Commerce Ministry has warned other countries against limiting trade with China to secure tariff exemptions from the U.S. [3][7]. China has promised to take countermeasures against nations that act against its interests [3]. This firm stance underscores the potential for retaliatory actions that could impact global trade dynamics and investor sentiment [GPT].

us-china trade war background

The trade war between the United States and China has been ongoing since 2018 [4]. It is marked by escalating tariffs and trade restrictions [4]. The United States has imposed tariffs of 145% on Chinese goods [2]. China has responded with tariffs of 125% on U.S. goods [7]. These measures have significantly impacted various sectors and prompted concerns about long-term economic consequences [GPT].

Bronnen

china tariffs trade agreement