Treasury Secretary Scott Bessent denied that the Trump administration is considering unilaterally slashing steep tariffs on Chinese imports, telling reporters Wednesday that high duties imposed by both sides need to come down mutually before talks can begin between the two economies.
“Neither side believes that these are sustainable levels,” he said. “This is the equivalent of an embargo, and a break between the two countries in trade does not suit anyone’s interests.”
The US currently has tariffs amounting to 145% on Chinese goods, while China has tariffs of 125% on US goods.
Bessent batted down a Wall Street Journal report that the Trump administration is considering cutting tariffs on Chinese imports, in some cases by more than half, as a way of deescalating tensions and could also be considering a tiered approach.
Bessent said he would be surprised if the administration were having discussions on tariff cuts, noting, “No unilateral offer from the president to deescalate, not at all.”
However, he added, “I don’t think either side believes that the current tariff levels are sustainable, so I would not be surprised if they went down in a mutual way.”
Talks, Bessent said, will be done at the very top between President Trump and Chinese President Xi Jinping.
Bessent stressed the US also hopes to strike trade deals with 14 other countries.
He said the US and India are “very close” to a deal, echoing comments from Vice President JD Vance.
He expects clarity on tariffs and a new tax bill by the third quarter of the year, allowing the administration to then focus on deregulation.
He was also asked about Federal Reserve Chair Jerome Powell. The president on Tuesday said he had “no intention” of firing Powell less than a week after he posted on social media that Powell’s “termination can’t come fast enough.”
Reporters asked Bessent if he had met with Trump on the subject. The Wall Street Journal reported Wednesday that White House lawyers had reviewed legal options for firing Powell, but Bessent warned Trump that ousting Powell would result in market chaos.
“This is mostly a dragon that the press … wanted to create that it that it could then slay,” Bessent said Wednesday.
He underscored that the president for years has expressed dissatisfaction with Powell, adding, “I wasn’t surprised by his comments at all yesterday.”
When asked about the president’s apparent shift on Powell from last week to now, Bessent disputed the “categorization” and stressed that the president had said he can’t wait for his termination. Powell’s term as chair expires in May 2026.
