In remarks delivered during a White House press conference on Tuesday, April 29, 2025, U.S. Treasury Secretary Scott Bessent placed the responsibility squarely on China to reduce its tariffs, warning of significant job losses for the world’s second-largest economy if current trade conditions persist.
Bessent cited external data to support his projection that China could lose up to 10 million jobs “very quickly” should U.S. tariffs remain at their current level of 145%. Even a partial reduction in tariffs, he warned, would still result in an estimated 5 million job losses for China.
“So remember that we are the deficit country,” Bessent explained. “They sell almost five times more goods to us than we sell to them. So the onus will be on them to take off these tariffs. They’re unsustainable for them.”
When asked whether the U.S. is currently engaged in direct trade negotiations with China, Bessent declined to confirm or deny. Conflicting signals have emerged in recent days, with Chinese officials denying any active talks despite comments from President Trump implying otherwise.
“I’m not going to get into the nitty-gritty again of who’s talking to whom, but as I said, I believe for the Chinese, these tariffs are unsustainable,” Bessent said.
Turning to other trade fronts, Bessent noted progress in discussions with key partners. He stated that the U.S. is nearing a trade agreement with India and can “see the contours of a deal” forming with South Korea. Substantial negotiations are also ongoing with Japan.
With respect to Europe, Bessent highlighted the contentious issue of the digital services tax targeting American tech giants, emphasizing that the U.S. expects the levy to be addressed as part of any broader trade agreement.
This latest flurry of activity comes as the Trump administration celebrates the president’s second “100th day” milestone. However, this effort to highlight achievements coincides with one of the worst starts to a presidential term for the U.S. stock market in decades.
Bessent attempted to calm investor anxiety by expressing optimism that more trade deals would be finalized in the near term, particularly with countries preparing for national elections.
“I think the aperture of uncertainty will be narrowing, and as we start moving forward announcing deals, then there will be certainty,” he said, while cautioning that “certainty is not necessarily a good thing in negotiating.”
Referencing data from Vanguard, Bessent drew a distinction between investor behavior in the face of trade uncertainty, saying, “Individual investors trust President Trump,” while institutional investors have been more reactive.
He also emphasized that businesses can expect greater clarity on tax policy. “The tax bill is moving forward,” Bessent said. “It is going to give permanence to the 2017 Tax Cuts and Job Act, which will go back to the question on certainty. It will give American business certainty. It will give American people certainty.”
Bessent added that he had a productive meeting on Monday with the “Big Six,” a key group of economic policymakers that includes NEC Director Kevin Hassett, House Speaker Mike Johnson, Senate Majority Leader John Thune, House Ways and Means Committee Chair Jason Smith, and Senate Finance Committee Chair Mike Crapo.
He further explained that revenue generated from tariffs could fund key initiatives proposed in President Trump’s tax agenda, including eliminating taxes on tips, overtime pay, and Social Security, as well as restoring interest deductibility for U.S.-manufactured vehicles.
Later on Tuesday, President Trump is expected to sign an executive order aimed at easing the impact of tariffs on the automotive industry.
