US Treasury Secretary to take lead in tariff negotiations

Published 09/04/2025, 14:12
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com -- US Treasury Secretary Scott Bessent announced his intent to take a leading role in negotiations concerning tariffs, with a particular focus on discussions with the Japanese delegation. Bessent's comments came during a recent appearance at the American Bankers Association (ABA).

The Secretary expressed his belief that the levels set by the president last Wednesday are the maximum, and encouraged other countries not to retaliate. He noted the overwhelmingly positive response to his calls for negotiation, with around 70 discussions planned. Bessent also stated that he will be heavily involved in the tariff negotiations, beginning with the delegation from Japan.

Speaking on the state of the economy, Bessent conveyed a sense of stability. He referenced strong job numbers and stated that the economy is in good shape, based on his conversations with business leaders and CEOs.

Regarding tariffs, Bessent acknowledged that China is the biggest offender in the global trading system and the only country to have escalated the situation. He warned against aligning with China, stating that it would be counterproductive.

On the subject of the spending bill, budget, and tax bill, Bessent reported that negotiations are proceeding better than expected. He emphasized the need to reduce government spending and rightsize the federal workforce. He also mentioned the aim to de-leverage the government sector and re-leverage the private sector, but cautioned against trying to accomplish everything at once, as it could potentially lead to a recession.

Bessent also addressed the topic of regulation, highlighting the importance of community banks and the need for tailored regulation. He expressed concerns about non-bank financial intermediation and activity, and outlined a comprehensive set of reform aims. He stated that he is working closely with key personnel to implement these changes.

In his closing remarks, Bessent discussed the transition from paper to digital forms of payments, an initiative aimed at reducing mail fraud. He also emphasized the importance of financial literacy, stating that it can help grow the American dream and reduce financial fraud.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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