The Trump economic team is trying to calm investor fears over escalating global trade wars, indicated by recent market rallies. With Treasury Secretary Scott Bessent noting that current tariffs are 'unsustainable,' both he and Trump suggest a move toward reducing tariffs on Chinese exports. However, the broader context remains confusing, as the US lacks a clear trade policy. This ambiguity was highlighted during a failed meeting with a Japanese trade delegation, which could not ascertain the US's demands, illustrating the ongoing uncertainty surrounding Trump's trade strategy.
The reassurances will continue until the investors are distracted. A coordinated effort to de-escalate brewing global trade wars has settled the mood on Wall Street.
Treasury Secretary Scott Bessent stated the current tariffs—145% for the US and 125% from China—were 'unsustainable,' signaling a potential easing of tensions.
Trump reassured that he won't pursue aggressive tariffs against China. The expected reduction in tariffs on Chinese imports won't reach zero, but fall between 50-65%.
Amidst these assurances, the absence of clear policy objectives raises concerns, as evidenced by a recent unproductive meeting with a Japanese trade delegation.
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