Asia FX rises; US-Japan trade deal boosts yen, won to 2-week highs
Investing.com -- Treasury Chief Bessent stated Friday that the United States is now seeing de-escalation with China, noting that China will allow magnets to flow to all previous recipients.
Speaking on Fox Business, Bessent expressed confidence that "China magnets will flow" and referenced Lutnick’s statement that 10 trade deals are expected. Despite the improving relations, Bessent confirmed that the 20% fentanyl tariffs on China remain in place.
Regarding the broader tariff situation, Bessent pointed out that U.S. tariffs on China currently stand at 30%, while Chinese tariffs on American goods are at 10%. When asked about reciprocal tariffs, he emphasized that "we don’t want to decouple" from China and added that his sense is that China wants to be a "responsible partner."
On tax matters, Bessent revealed that the U.S. would have lost $100 billion from the Pillar-2 tax accord and described Section 899 as a "weapon" to push against unfair taxes. He mentioned meeting with "SALT Republicans" on Wednesday night and stated they are "very close" to a deal on SALT in the tax bill.
Looking ahead to ongoing negotiations, Bessent noted that many countries feel pressure before deadlines and added that after completing 10 or 12 deals, there are 20 more important ones still to address.
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