In a development that could reshape global economic dynamics, U.S. Treasury Secretary Scott P. Biesent confirmed on Monday that China has recently shown clear signs of de-escalating trade tensions with the United States, reflecting its intention to ease the ongoing trade dispute by implementing tariff exemptions.
Signs of De-escalation from China
Biesent explained that the relationship with China remains "complex," despite these initiatives, highlighting that the U.S. has engaged in lengthy talks with Japanese allies to strengthen bilateral trade cooperation, while negotiations with Asian partners are progressing "positively."
Proposals to Avoid Additional Tariffs
Biesent further revealed that 17 major trading partners have offered "very good proposals" to help the U.S. avoid imposing additional tariffs, thereby enhancing the likelihood of reaching agreements that would help rebalance global trade.
European Concerns Over Euro Strength
Regarding Europe, the U.S. Treasury Secretary emphasized growing concern among European leaders about the strength of the euro and its impact on the competitiveness of their exports, adding a new layer of economic challenges in the region.
Market Reaction
In response to market reactions following his comments, Biesent expressed surprise at the significant rise in financial indices after participating in the "J.P. Morgan" conference, stressing that he did not provide any new information that warranted such great optimism.
He pointed out that markets will continue to show great resilience, with various alternatives available to meet global demand.
Expectation of a Trade Deal Breakthrough
In closing, Biesent expressed optimism that the first trade agreement could be reached this week or next, marking a potential turning point for global markets amid growing expectations of a near-term breakthrough in the trade dispute.
