Treasury Secretary Scott Bessent Hints Trade Deals Breakthrough

Treasury Secretary Scott Bessent Highlights Shifts in Asia Trade

Treasury Secretary Scott Bessent praised South Korea’s approach stating a US-South Korea trade deal that could take place next week. “We had a very successful bilateral meeting with the Republic of South Korea today”, Bessant told the reporters in the White House. “We may be moving faster than I thought, and we will be talking technical terms as early as next week.”  Trump also said that he is expecting many trade deals to get finalised in the upcoming three to four weeks. South Korea is among the first countries the Trump administration has opened business negotiations with. 

The heavy reliance on the US market makes South Koreans automakers sensitive to any new trade barrier, tariffs especially. It could negatively impact the sale and hinder the industry’s growth. 

The country is facing 25% U.S. reciprocal tariffs and is another key Asian business partner charged with 24% tariff, after Japan. In a recent post on X, Treasury Secretary Scott Bessent has written “Very constructive talks with Minister of Finance Katsunobu of Japan. I was pleased to follow up on previous reciprocal trade discussions between the United States and Japan, as well as to discuss matters pertaining to exchange rates. Looking forward to our next conversation”.  

The tariff conflicts between China and the US continue to dominate the trade focus. Trump has been inconsistent about the state of relation with China as the signs of de-escalation are ascending. Treasury Secretary Scott Bessent stated on Wednesday that it is important to cut down the tariffs between the both the countries before trade negotiation proceeding, but the President won’t lower the tariffs on Chinese imports, unilaterally.

When Treasury Secretary Scott Bessent was asked about China, he said it would be an “incredible opportunity” to make a deal, if they are “serious” on making their economy less reliant on manufacturing exports.

Treasury Secretary Scott Bessent stated that the meetings at the IMF and the World Bank are easing tensions needed to fix the trade relations of The U.S. and China.

On Friday, the reports revealed that China has silently reversed tariffs on a few US semiconductors and some US pharmaceuticals, which relieved financial strain on its technology and drug industries. As Bloomberg reports Beijing is also cutting duties on medical equipment and chemicals.

These developments are the outcome of China’s resistance attitude, while Trump caused confusion by stating that he spoke to President Xi, a claim that Beijing denied.

“China and the USA are NOT having any consultation or negotiation on tariffs. The US should stop creating confusion,” the Chinese Embassy in Washington dictated on social media. Later on Friday, Trump combined the mixed messages by stating that he would withdraw duties on China unless Beijing gives the US something “Substantial” in return.

 Investors and Treasury Secretary Scott Bessent are considering these developments as the potential turning point, with growing optimism that both sides might shift towards negotiation instead of further escalations. Recently, the country has escalated import duties on US goods from 84% to 125%, while the US increased tariffs on most Chinese imports to 145%.

Other key tariffs, delays and exemptions are the main points of interest to the investors. Trump has announced an exemption on a few auto parts taxes after postponing duties on some consumer tech, even though he says the tariff will still be there, the White House has launched a probe into the truck imports, possibly leading to more duties.