US LNG exports surge but will buyers in China turn up?
Treasury Secretary Scott Bessent discussed a range of issues, from ongoing trade talks to potential tariffs and tax bills, on Fox News today. His comments came after President Trump’s social media post where he criticized the European Union (EU) and recommended a 50% tariff on the bloc, starting June 1.
Bessent indicated that the 90-day pause in talks on April 2 was based on good-faith negotiations. He also noted that President Trump views the EU’s proposals as not as favorable as those from other nations. The proposed 50% tariff on the EU, according to Bessent, is a response to the pace of the EU’s actions in the trade talks.
The Treasury Secretary expressed hope that President Trump’s tariff threat would ’light a fire’ under the EU to speed up negotiations. He also commented on the desire to have tech giant Apple (NASDAQ:AAPL) help secure the chip supply chain.
In terms of the tax bill, Bessent does not anticipate a significant need for changes in the Senate. However, he stressed the importance of careful timing for the tax bill.
On the topic of trade talks with other nations, Bessent mentioned that negotiations with India are progressing. He added that many Asian nations have come forward with very good deals. He noted that, with the exception of the EU, most are negotiating in good faith. As the 90-day pause nears its end, more deals are expected to be announced.
President Trump’s social media post, which preceded Bessent’s comments, criticized the EU for taking advantage of the United States on trade. The President pointed out trade barriers, taxes, penalties, monetary manipulations, and lawsuits against American companies as issues leading to an annual trade deficit with the EU of more than $250,000,000. He concluded by recommending a 50% tariff on the EU, starting June 1, 2025, unless the product is built or manufactured in the United States.
Following the President’s post, major averages experienced a slump.