Treasury Secretary Scott Bescent said Wednesday there is an opportunity to trade with China by softening the Trump administration’s trade stance that has led to huge market rallies over the past two days.
“There’s a great opportunity here,” he said.
Such transactions are based on an increase in domestic production in the US and a decrease in import consumption, and on a lower export-based production in China, along with a greater domestic consumption of Chinese products.
“The US aims to rebalance more manufacturing. That identity will be less consumption. If China is less dependent on export-driven manufacturing growth and rebalance on the domestic economy, then let’s work together if you want to rebalance,” he said.
According to the Associated Press, Guo Zi-Kun, a spokesman for the Chinese Ministry of Foreign Affairs, warned the United States to “seek dialogue on the basis of equality, respect and mutual respect” and encouraged them to be aware of “blackmail” from the US side.
According to a report by Bloomberg News and CNBC, Beast launched a massive stock market rally after he described the current trade standoff with China as “unsustainable” after meeting with investors on Tuesday.
The rally continued through Wednesday, when the Dow Jones Industrial Average, a major US company, jumped over 1,000 points during the morning trading session.
In a series of escalations that began on April 2, the Trump administration raised China’s tariffs to 145%, urging retaliatory tariffs from China to comparable levels.
Trump has allowed some exemptions for these tariffs, particularly in the electronics sector, but the empty import tax has resulted in a near halt of trade with one of the top US trading partners.
According to the International Monetary Fund, overall US tariff rates have risen by more than 25%. This is the highest level in over a century, and is higher than the 1930 Smootholi tariff levels.
President Trump held a meeting with his retail CEO this week, reportedly warning the president about empty shelves caused by lower trade volumes.
Shippers and port operators have warned of dropping imports over the course of weeks.
“A report that came out of China and Southeast Asia is that, as I predicted 10 days ago, some really well-known brands that have been suspended on freight for the time being, are assessing exactly what these trade lanes look like.”
Updated at 11:36am on EST
