Earlier, in an interview with Fox Business, Bessent signalled that Washington and Beijing are likely to extend their temporary suspension of tariffs when officials meet in Stockholm, Sweden, next week. The discussions, scheduled for Monday and Tuesday, would likely result in an extension of the current 90-day pause on most tariffs between the world’s two largest economies.
The upcoming talks mark another step forward following months of negotiations during which both sides gradually rolled back steep tariffs imposed earlier this year.In April, President Donald Trump’s administration raised tariffs on Chinese goods to an effective blanket rate of 145%, as part of a broader effort to reshape the global trade order. Beijing retaliated with 125% tariffs on US imports.
EU trade talks
Similarly, Bessent said that trade talks with the European economic bloc — the EU—have smoothed and are going better than earlier. He also remarked that the potential retaliatory tariff from the EU on US imports was “a negotiating tactic.”
On July 12, European Commission President Ursula von der Leyen, responding to a US letter outlining 30% tariffs on EU exports, said the 27-member bloc would take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.
Row with the Federal Reserve
Speaking about Federal Reserve Chair Jerome Powell, Bessent clarified that President Trump is not minded to fire Powell, whose term as chair will be up in May 2026.
“We are not in a rush,” the Treasury Secretary stressed.
However, he expressed dismay over the Federal Reserve’s decision on interest rates. “Not sure what Fed is looking at,” Bessent said, adding that the central bank’s tariff analysis “is a bit off.”
On July 15, in an interview with Bloomberg, Bessent suggested that Federal Reserve Chair Jerome Powell should step down from the central bank’s board when his term as chair ends in May 2026.
