Catenaa, Monday, April 28, 2025- US Treasury Secretary Scott Bessent said it’s “up to China” to de-escalate trade tension with the US as the Trump administration sends mixed signals on relations with China.
Bessent said in an interview with CNBC on Monday it’s “up to China” to de-escalate. “As I’ve repeatedly said, I believe it’s up to China to de-escalate because they sell five times more to us than we sell to them, so these 125% tariffs are unsustainable.
He did say that recent moves by China to exempt certain US goods from tariffs showed progress. But he warned he has “an escalation ladder in my back pocket and we’re very anxious not to have to use it.”
Bessent said that the US has made “very good” progress with many of its top trading partners, with Bessent singling out India. “I would guess that India would be one of the first trade deals we would sign,” he said.
Since the US raised tariffs on China to 145% in April, cargo shipments have dropped dramatically, with estimates suggesting a 60% decline, Bloomberg said.
By mid-May, businesses will need to restock, and retailers like Walmart and Target have warned of empty shelves and rising prices. Experts predict major supply shortages and layoffs in sectors like trucking, logistics, and retail.
In an interview with Time magazine, Trump said he expects many trade deals to fall in place over the next three to four weeks.
Investors are also focused on other key tariffs, as well as delays and exemptions. Trump is reportedly planning an exemption on some auto parts levies after suspending duties on some consumer tech, even as he insists these tariffs will eventually come to fruition.
US stocks fell across the board on Monday with the S&P 500 down by 0.58%, Dow Jones by 0.35% and Nasdaq by 1.27%.
