“We hope we can see a significant reduction in the tariffs we are being charged,” he says.
Treasury Secretary Scott Bescent said Tuesday that the US has received “good offers” in tariff negotiations with its major US trading partners, with some trade deals being announced this week.
“We expect to see a significant reduction in tariffs we are being charged, as well as the non-tariff barriers, currency manipulation, subsidies, and both labor and capital investment,” he told the House Approvals Committee, adding that some countries are making good offers.
More than a month ago, President Donald Trump announced a 10% baseline tariff in almost every country in the world, and higher fees in countries with more important trade with the United States. A week later, a announcement from Trump revealed that the higher tariff rate was suspended for 90 days and secured negotiations, but he raised tariffs in China.
He also separately imposes 25% tariffs on automobiles, steel and aluminum, and 25% tariffs on Canada and Mexico. For the two US neighbours, tariffs were implemented at the beginning of the year to offset unchecked illegal immigration and fentanyl trafficking domestically through both countries. Trump said those tariffs could be reduced or eliminated if these issues were addressed. Imports complying with the US and Mexico-Canada contract are exempt from customs duties.
Bessent told House committee Tuesday that around 97% or 98% of the US trade deficit are around 15 countries, most of which are major trading partners, and the debate is moving forward with a lot.
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“I would be surprised if there weren’t 80 or 90 percent of people wrapped up by the end of the year, and that could be much faster,” he said. “I think we’ll probably announce a trade agreement with our biggest trading partners as early as this week.”
Trump told reporters on Sunday that his administration could announce some trade deals this week, but he was not included in details. Some administrations have suggested that India and Japan could be the first countries to sign a trade agreement with the White House to lower the tariff rates Trump collected.
Meanwhile, Bescent’s comments about lack of talks with the Chinese administration were talking to Chinese officials about various things after Trump told reporters on Sunday that he had no plans to talk to China’s Communist Party leader Xi Jinping this week.
“We had lost a trillion dollars” in trade with China, he added.
Aside from tariffs, Bescent warned that the US government is engaged in uncontrollable spending that he says needs to be held back. The current borrowing restrictions set by his agency are now on the “warning track,” adding that it will provide more guidance on when the government will run out of funds.
“There’s no revenue issues. There’s a expenditure issue,” he said. “We have to put this expenditure under control.”
Reuters contributed to this report.
