Executive Summary
- Treasury Secretary Scott Bessent confirmed the U.S. will not modify its trade negotiating stance with China due to stock market volatility.
- Bessent challenged a Wall Street Journal report on China’s trade conflict strategy, dismissing it as “terrible” and accusing the newspaper of taking “CCP dictation.”
- President Donald Trump believes a high stock market is a direct result of sound policies, such as increased investment in artificial intelligence, and the administration is committed to its trade strategy.
The Story So Far
- The current U.S. Treasury Secretary’s comments come amidst significant stock market volatility, which is directly influenced by the shifting status of ongoing U.S.-China trade negotiations. These discussions have seen President Donald Trump issue threats regarding tariffs and trade, prompting questions about the administration’s resolve.
Why This Matters
- Treasury Secretary Scott Bessent’s assertion that the United States will not modify its trade negotiating stance with China due to stock market volatility signals a firm commitment to the administration’s hardline approach. This implies that businesses and investors should anticipate continued, and potentially escalating, trade tensions, as market fluctuations will not deter the U.S. from pursuing its perceived economic benefits, thereby prolonging uncertainty in global markets.
Who Thinks What?
- Treasury Secretary Scott Bessent asserted that the United States will not modify its trade negotiating stance with China due to stock market volatility, emphasizing that U.S. trade policy is determined by what is economically beneficial for the nation and dismissing reports suggesting otherwise.
- A report in The Wall Street Journal suggested Chinese President Xi Jinping is “betting that the U.S. economy can’t absorb a prolonged trade conflict” with Beijing.
Treasury Secretary Scott Bessent stated Wednesday that the United States will not modify its trade negotiating stance with China due to stock market volatility. Speaking at CNBC’s Invest in America Forum, Bessent emphasized that U.S. trade policy is dictated by what is economically beneficial for the nation, not by market fluctuations amid ongoing trade talks between the world’s largest economies.
Response to Wall Street Journal Report
Bessent also challenged an overnight report in The Wall Street Journal that suggested Chinese President Xi Jinping is “betting that the U.S. economy can’t absorb a prolonged trade conflict” with Beijing. He dismissed the report as “terrible,” accusing the newspaper of taking “CCP dictation.”
Market Volatility Amid Trade Tensions
His comments come as stock markets have experienced significant volatility in recent days, influenced by the shifting status of U.S.-China trade discussions. Markets initially declined after Trump threatened to increase tariffs on Chinese imports in response to new export controls on rare earth minerals. A subsequent softening of Trump’s tone led to a market rebound, though volatility resumed after Trump issued another trade threat, citing China’s failure to purchase U.S. soybeans.
President Trump’s Perspective on Markets
Bessent noted that President Donald Trump “likes a high stock market” but believes such market performance is a direct result of sound policies. He highlighted increased investment, particularly in artificial intelligence, as an example of these beneficial policies.
Treasury Secretary Scott Bessent’s complete interview on CNBC:
The Treasury Secretary’s remarks underscore the administration’s commitment to its trade strategy with China, signaling that market movements will not sway its approach to negotiations or retaliatory measures.
