Treasury Sec. Bessent says China, U.S. have ‘opportunity for a big deal’ on trade

Treasury Secretary Scott Bessent on Wednesday said “there is an opportunity for a big deal here” on trade issues between the United States and China.

“If they want to rebalance, let’s do it together,” Bessent said during an appearance at the Institute of International Finance in Washington, D.C.

“This is an incredible opportunity. I think if Bridgewater founder Ray Dalio were to write something, he could call it a beautiful rebalancing.”

Dalio, on April 13, told NBC News that he was worried that President Donald Trump’s tariff and economic policies would threaten the world’s economy, potentially to the point of “something worse than a recession.”

Trump has imposed ultra-high tariffs on China, of 145%. Shortly before Bessent spoke on Wednesday, The Wall Street Journal reported that the Trump administration was considering reducing those tariffs to between 50% and 65%, which would still be extremely high, relatively speaking.

Bessent, in his address to the IIF, outlined what he called “a blueprint to restore equilibrium to the global financial system and the institutions designed to uphold it,” specifically the World Bank and International Monetary Fund.

“The IMF and World Bank have enduring value,” Bessent said. “But mission creep has knocked these institutions off course. We must enact key reforms to ensure the Bretton Woods institutions are serving their stakeholders — not the other way around.”

He said that “Intentional policy choices by other countries have hollowed out America’s manufacturing sector and undermined our critical supply chains, putting our national and economic security at risk.

“President Trump has taken strong action to address these imbalances and the negative impacts they have on Americans.

“This status quo of large and persistent imbalances is not sustainable. It is not sustainable for the United States, and ultimately, it is not sustainable for other economies.”