US Treasury Secretary Scott Becent appeared on CNBC's “Scoobox” on Monday morning, providing a wide range of updates on trade negotiations, global capital flows and the administration's economic strategy as it strengthens tariff debate with China.
Bessent repeatedly said on CNBC that various branches of the US government continue to contact Chinese officials, but it will ultimately be up to China to take steps towards trade removal. He said China “sells us five times more than we sell to them,” but Becent emphasized that the current 125%-145% tariffs are “unsustainable.” So imbalances give China a greater incentive to compromise.
While President Trump's strict tariff stance sparked debate among investors, Bescent noted that the US is working on a standardised trade negotiation framework for other major countries. With key trading relationships between 15 and 18 being reviewed, Bessent said several Asian countries have already provided important proposals to lower tariffs and non-tariff barriers.
His comments seem to be that there is at least a stable market, with high stocks and Bitcoin (BTC) holding the $94,000 level.
The US remains the best global investment hub
To address concerns that the US is losing its advantage as the best global capital home, Bescent highlighted the administration's commitment to tax certainty, deregulation and fairer trade as key pillars that will keep the US “the best place in the world for capital to arrive.”
He contrasted this with slower growth and heavier regulations in Europe, warning that high European tariffs on goods and services are undermining its competitiveness. This is evident in the Euro Stoxx 50 Index, which offers 1.86% annual revenue over the last 20 years, compared to over 10% of the S&P 500 Index.
Bescent also predicted that the European Central Bank will soon cut interest rates to weaken the euro. Meanwhile, the US remains committed to a strong dollar policy.
Public comments are the same as private
When asked about the market's reaction to previous comments on “short-term emissions” in trade tensions, Bessent revealed that the JPMorgan Investors Conference had personally said nothing in an interview that had not yet been made public just a few days ago. He noted that the markets gathered temporarily after the meeting, but the movement is likely based on misunderstandings rather than new information.
Bessent emphasized that broader US-China economic ties remain complex, but believes structural reality will ultimately force change. China's economic model relies heavily on exporting subsidies to the US, which is no longer sustainable in today's environment of rising tariffs and increasing scrutiny.
“I believe that unsustainable things don't last,” Bescent said.
