Treasury Secretary Scott Bessent said the United States is satisfied with the current tariff arrangement with China and that the status quo is working well. He highlighted that China represents the largest tariff revenue source and suggested there is no immediate need to change the setup. U.S. and China have held constructive talks and are expected to meet again before November, creating potential space for a summit between President Trump and Xi Jinping. The administration extended a 90-day pause on higher tariffs into early November and both sides agreed to reduce reciprocal tariff hikes and ease some export restrictions. S&P Global Ratings indicated that tariff revenues help offset fiscal pressures from tax cuts, supporting the U.S. credit position. Trade tensions continue to cause pain for U.S. sectors such as soybean farming.
Treasury Secretary Scott Bessent indicated the U.S. is satisfied with the current tariff set up with China, a signal the Trump administration is looking to maintain calm with its economic rival before a trade truce expires in November. When asked in a Fox News interview when progress in negotiations would be seen and if the U.S. needed a trade agreement because of how tariffs were going, Bessent said that "we're very happy" with the situation with China. "I think right now the status quo is working pretty well," he said.
"China is the biggest revenue line in the tariff income-so if it's not broke, don't fix it," he said in the interview on Tuesday. "We have had very good talks with China. I imagine we'll be seeing them again before November."
Last week, Trump extended a pause on higher tariffs on Chinese goods for another 90 days into early November, a move that stabilized trade ties between the world's two largest economies. That was possible because the U.S. and China agreed to reduce tit-for-tat tariff hikes and ease export restrictions on rare earth magnets and certain technologies. S&P Global Ratings has said revenues from Trump's tariffs would help soften the blow to the U.S.'s fiscal health from the president's tax cuts, enabling it to maintain its current credit grade.
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