Tariffs on China Still Stand; Agreement Is Necessary: Bessent

On April 22, US President Donald Trump stated that US tariffs on Chinese imports “will drop substantially, but not to zero,” adding that he saw no need to take a hardline approach toward Chinese President Xi Jinping. However, on April 23, Treasury Secretary Scott Bessent clarified that no unilateral reduction of tariffs has been proposed by the Trump administration.

Speaking after a keynote address at the Institute of International Finance (IIF) in Washington, Bessent firmly denied the existence of any such offer. “Absolutely not,” he said. He acknowledged that both Washington and Beijing likely recognize current tariff levels as unsustainable, suggesting that any reductions would have to be mutual.

Bessent emphasized that the US strategy toward China goes beyond tariffs, taking into account non-tariff barriers and state subsidies. He underscored the strength of diplomatic ties at the highest levels between both nations, though he noted there is no set timeline for formal negotiations. He projected that a full rebalancing of trade relations could take two to three years.

On a separate front, Bessent revealed that the US is nearing a trade agreement with India. These agreements, he noted, may not take the form of detailed treaties but would instead serve as flexible frameworks to guide future engagement.

The Trump administration is pushing to finalize trade deals with most countries affected by tariffs in the coming month. Nonetheless, China remains the focal point of a broader trade conflict driven by Trump’s tariff policy. US Commerce Secretary Howard Lutnick, a proponent of de-escalation, has joined Bessent in advising the president, while White House Adviser Peter Navarro continues to champion a more hardline stance.