Treasury Secretary Scott Bessent recently appeared on “Face the Nation with Margaret Brennan” to discuss the latest developments in US-China relations, tariffs, and economic policy. Speaking from Kuala Lumpur alongside President Trump, Bessent shared insights on trade negotiations, new tariffs, and the impact on American farmers. He confirmed that the threat of a 155% tariff on Chinese goods is off the table, following productive meetings with Chinese officials. The talks also addressed the rare earth export controls China threatened, which Bessent said will not go into effect. This move comes as both countries prepare for a significant summit in Korea, where leaders are expected to finalize agreements on trade and technology, including TikTok.
US Farmers and Trade Relief
Bessent reassured American soybean farmers, hit by China’s previous boycott, that new deals will bring substantial purchases of US agricultural products. He highlighted that the market is stabilizing and that financial support to farmers will continue. Bessent also addressed concerns over financial aid to Argentina, clarifying that the Exchange Stabilization Fund has never lost money and that any support is structured as a swap line, not a giveaway.
Tariffs, TikTok, and International Relations
A finalized deal on TikTok was reached, focusing on Chinese approval of the transaction, with more details expected after the leaders’ summit. Bessent emphasized that no changes have been made to export controls on semiconductor chips or Chinese investments. He also commented on recent US sanctions against Russia, predicting economic pain for Russia and a significant drop in oil profits, despite Russian claims to the contrary.
Inflation and Domestic Politics
While President Trump declared inflation defeated, Bessent acknowledged that core inflation remains but is on a downward trend. He urged moderate Democrats to support a government funding resolution, citing the potential impact on federal employees and the military if the shutdown continues.
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