In a recent appearance on "Kudlow," U.S. Treasury Secretary Scott Bessent provided insights into the ongoing trade negotiations led by the United States. President Donald Trump has introduced new tariffs on imported goods, including a standard 10% levy and higher individualized tariffs for specific nations. Bessent highlighted the administration's strategy of granting countries time to consider their responses while emphasizing the importance of reducing non-tariff barriers, currency manipulation, and subsidized financing.
Bessent elaborated on the administration's approach to tariff negotiations, stating that President Trump aims to maximize leverage in these discussions. The initial tariffs were announced on April 2, allowing nations several days to reflect on their strategies. Bessent advised foreign officials to maintain composure and focus on proposing solutions to reduce tariffs and non-tariff barriers, as well as addressing issues like currency manipulation and subsidized financing. This approach, according to Bessent, will pave the way for meaningful negotiations with President Trump.
As part of the ongoing negotiations, Japan has emerged as a priority due to its swift response and strong military and economic ties with the United States. Bessent mentioned that over 50 countries have reached out to the Trump administration seeking negotiation opportunities, making the coming months busy for the U.S. trade team. Alongside Jameson Greer, the U.S. Trade Representative, Bessent will lead discussions with Japan, with direct involvement from President Trump.
Bessent also defended the administration's use of trade deficits in calculating reciprocal tariffs. He pointed out that academic studies reveal non-tariff trade barriers as the primary obstacle to fair market access for the U.S. During his interview, Bessent expressed optimism about reducing tariff levels through successful negotiations, contingent upon the cooperation of other countries. He reiterated that President Trump is personally committed to ensuring a level playing field in international trade.
The upcoming weeks will be crucial for U.S.-Japan trade relations, with the potential for significant progress. Bessent emphasized that the outcome of these negotiations hinges on the willingness of other nations to engage constructively. As the administration continues its efforts, it remains focused on achieving fair and equitable trade agreements globally.