The secretary of the Treasury, Scott Besent, said Wednesday that, although Trump’s administration was committed to playing an active role in global financial institutions, he focused on addressing large commercial imbalances, especially with China, whose economic model Besent called “unsustainable.”
Besent’s comments occurred in the midst of increasing optimism that President Donald Trump has begun to show signs of softening his tariff thrust, as well as his attacks against the president of the Fed, Jerome Powell. But Besent did little to indicate a short -term change in the combative position with the rest of the world That Trump has taken since he returned to office.
While Besent said that “more than 100 countries” have now approached the US. To address commercial imbalances, Trump’s key point of conversation reaffirmed that the rest of the world, as well as the former presidents of the United States, were responsible for damaging the heart of the United States.
“For decades, successive administrations were based on defective assumptions that our commercial partners would implement policies that would boost a balanced global economy,” Besent said. “On the other hand, we face the reality of the great and persistent American deficits as a result of an unfair commercial system.”
He continued: “The intentional policy options of other countries have promoted to the United States manufacturing sector and undermine our critical supply chains, putting our national and economic security at risk.”
Trump has said that he sees the large commercial deficits in the United States as a sign that the country is being “scammed”, an opinion that other economic commentators dispute, saying that deficits simply reflect that the United States simply consumes more goods from all over the world than it produces.
The deficit is especially large with China. And although Trump had raised the fee of tariffs against imports from that country to up to 145%, Besent has pointed out that the aggressive position of the administration to China would probably relax, telling a group of investors on Tuesday that the administration was now looking for a “reduction” with China, and added that the current situation “was not sustainable”, according to CNBC.
On Wednesday, the Wall Street Journal reported that the White House was now looking to reduce the possible tariffs halfway, with more rigid tariffs instead for essential goods, although everyone would shut up more slowly.
In response, a White House spokesman said the administration continued to negotiate with China.
“President Trump has been clear: China needs to make an agreement with the United States of America,” said White House spokesman Kush Desai, in a statement. “When decisions are made on rates, they will come directly from the president. Anything is just pure speculation.”
While the probable softening towards China has helped solve the markets, investors remain scared about the precedent established by Trump’s erratic policy formulation.
Other global players seek to enter the rape that Trump has created. In Wednesday’s comments, a European Union official said that the region was using its “predictability as a strength”, since it sought stronger relations with other nations.
“In times of agitation, predictability, the rule of law and the defense of the international order based on the rules become the largest assets in Europe,” said Valdis Dombrovskis, commissioner of EU Economy and Productivity, in a position on X.
He also told the Wall Street Journal that the EU would not move for its value added tax, or in the agricultural subsidies that it provides to farmers in the region, both objectives of Trump’s criticisms.
Besent, a former coverage fund manager, has been seen as the key white house link with Wall Street. He and Commerce Secretary Howard Lutnick were fundamental to persuade Trump to make a 90 -day pause in the country’s rates per country that Trump announced earlier this month. The key financial figures of the USA. UU. They seemed to have been aware that Besent’s actions were increasing when the White House fought with the collapse of the market that the announcement of the rates had presented.
“Let Scott take the time” to negotiate, said the CEO of JP Morgan, Jamie Dimon, Fox News Business just before the pause was announced on April 9.
A week later, Besent told Bloomberg TV that the worst market volatility had “probably reached its maximum point”, since he pointed out an “orderly process” in the fees negotiations ahead.
Besent has also come forward after an apparent power fight with Elon Musk culminated last week in replacing Musk’s choice to lead the internal tax service by a Besent deputy, a few days after the election of musk had been named.
“Trust must be returned to the IRS, and I am completely sure that Undersecretary Michael Faulkender is the right man at the moment,” Besent said in a statement, added that Gary Shapley would continue to be a main advisor for him in the IRS reform.
