In a recent interview with Fox Business Network, U.S. Treasury Secretary Bessent shared key updates on global trade, economic partnerships, and the U.S. economic outlook. Below are the highlights from the conversation:
Trump-Zelenskiy Meeting Boosts Minerals Deal
Bessent revealed that the recent meeting between former President Donald Trump and Ukrainian President Zelenskiy at the Vatican played a crucial role in securing a strategic minerals deal between the U.S. and Ukraine. He emphasized that this deal strengthens U.S.-Ukraine ties and sends a clear message to Russian leadership that the U.S. and Ukraine share common goals.
U.S.-Ukraine Partnership Will Support Ukraine’s Economy
Bessent stated that the new agreement with Ukraine will help boost Ukraine’s economy and give the U.S. a stronger position in negotiations with Russia.
China Trade Talks: Multi-Step Process Ahead
On China, Bessent admitted that the tariff situation will require multiple steps to resolve. He stressed the need for a de-escalation in tensions, saying China must rebalance its economy. If both nations can work together on rebalancing, it would be a major achievement.
He also mentioned that the Chinese economy is slowing down significantly, which might lead to revisiting Trump’s Phase 1 trade deal. The U.S. plans to reduce unfair trade barriers and ensure that China meets its past commitments. He warned that if holiday orders are not placed soon, it could hurt China’s exports badly.
Europe and Japan: Focus on Fair Trade
Bessent confirmed that the U.S. is working to eliminate digital services taxes in Europe and that tariff uncertainty will continue to lessen over time. He noted that strategic uncertainty is part of Trump’s negotiating tactics.
He also mentioned a meeting with the Japanese delegation is scheduled for today, underlining ongoing international trade efforts.
U.S. Economy and Interest Rates
Regarding the domestic economy, Bessent said:
U.S. household spending remains strong
GDP might be revised due to import-related inventory buildup
A yield curve where 2-year Treasury yields fall below 10-year yields is a signal that the Federal Reserve should consider cutting interest rates
Source: Fox Business Network Interview
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