US calls on China to de-escalate trade tensions; India poised for first major trade deal

Bessent says it’s up to China to de-escalate trade tensions

US Treasury Secretary Scott Bessent placed the responsibility on China for the progress of a potential trade agreement, emphasizing that it is China's responsibility to de-escalate the trade tensions. Bessent, speaking in an interview with CNBC, noted that China sells five times more goods to the U.S. than vice versa, making the current tariffs of 120% to 145% unsustainable.

He also mentioned that the U.S. has received numerous proposals from various countries, with India being a top contender for a potential trade deal. "I would guess that India would be one of the first trade deals we would sign," Bessent remarked.

In his comments, Bessent also predicted that the European Central Bank might soon start cutting rates to counter the strong euro, aligning with the U.S. policy of a stronger dollar. He pointed out that European nations could be concerned about the strength of the euro, which has gained nearly 10% against the dollar this year.

These remarks come amid growing market uncertainty following President Donald Trump’s announcement of broad global tariffs in early April. Despite the ongoing trade tensions, Bessent highlighted progress in negotiations, singling out India as one of the key nations in talks for new trade agreements.