U.S. tariffs may ease if trade gap narrows, Bessent says
U.S. import tariffs may be gradually reduced if the country successfully addresses its trade imbalance, U.S. Treasury Secretary Scott Bessent has said, Nikkei reported on Aug. 11.
Tariffs should eventually become a “melting ice cube” if U.S. manufacturing returns and reliance on imports declines, which he believes will help restore economic balance, Bessent stated.
Washington is negotiating with countries lacking trade agreements, aiming to finalize these by the end of October. Talks with China are particularly significant but complicated by its “non-market economy,” where much of its production is state-subsidized below cost, prioritizing employment over profitability, according to Bessent.
The tariff policy serves a dual purpose: increasing tax revenue and protecting domestic industry, adding that President Donald Trump also uses tariffs as a tool in foreign policy negotiations.
On April 2, Trump announced tariffs for most U.S. trading partners. After a 90-day deferment, a baseline 10% rate took effect for all, and on Aug. 1, an updated list of countries facing new restrictions due to the absence of trade agreements was released.
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