Overview

• Treasury Secretary Scott Bessent announced that he expects a near-term reduction in U.S.-China tariffs, addressing concerns over the trade war's sustainability.
• President Trump has suggested potential cuts to the additional 125% reciprocal tariffs on Chinese imports, currently layered on top of a 20% baseline tariff.
• Bessent emphasized the need for global trade rebalancing, stating that both the U.S. and China must adapt to achieve economic stability.
• The Trump administration is reportedly evaluating reductions to steep tariffs on China while maintaining a 10% baseline import tax.
• Bessent’s remarks come during the IMF/World Bank meetings, where he aims to reassure global markets after significant disruptions caused by the tariff policies.