US Treasury Secretary Bessent: China is bullying by stealing intellectual property and creating trade barriers; tariff policy will be clarified within 90 days

U.S. Treasury Secretary Scott Bessent was interviewed on the U.S. tax filing deadline day (4/15), providing detailed explanations on inflation, interest rates, economic recession, tariff negotiations, and trade policy with China. He emphasized that the U.S. economy is not as bad as perceived, and the White House's three-part plan (tariffs, tax cuts, deregulation) will become clear within 90 days.

Economic Situation: Egg Prices Dropped, Employment Data Stable, Consumption Still Holding Up

Bessent first stated:

• Egg prices have dropped over 50% compared to their previous peak

• Last week's new employment was 228,000, higher than the expected 150,000

• Credit card companies and major bank executives say: "Consumer spending is stable"

• Overall conditions of stock market, interest rates, exchange rates, and energy prices are not bad, with the Financial Conditions Index (FCI) stable.

Bessent emphasized that micro-level data shows no major problems, and one should not be pessimistic about the future.

• US and China May Meet at IMF World Bank Annual Meeting
• US Negotiating with 14 Other Major Trading Partners
• May Not Sign Immediately, But Should Establish Consensus

Future of Tariffs: Will Adjust Based on Sincerity, US Reserves Space

Regarding whether tariffs will exceed the current 145%. Bessent joked: "I won't reveal the president's negotiation strategy in a national broadcast, but the president will put everything on the table."

In response to Xi Jinping's criticism that US tariffs are "unilateral bullying", Bessent retorted: "They steal intellectual property, create trade barriers, and subsidize industries - these are the real bullying."

What an Ideal US-China Agreement Looks Like, Focus on China's Rebalancing

Bessent stated that to reach a consensus, two major issues need to be resolved:

1. China needs to stop subsidizing manufacturing and instead stimulate domestic demand and consumer spending

2. The US will rebuild manufacturing and reduce dependence on imports.

He added that the ideal situation is for China to reduce exports and the US to expand domestic demand, making the global economy more balanced.

Tax Reform and Middle-Class Support Measures Coming Soon, Tax Policy to be Clear in 90 Days

Bessent also revealed the direction of the new tax reform draft:

• Tax exemptions for those earning less than $100,000:

  • Tips

  • Social Security

  • Overtime

  • Tax deduction for loans to buy American cars

• For businesses:

  • New factories and equipment can be depreciated in one go (full deduction)

Bessent pointed out that last time these policies were most felt by lower-income families, not the wealthy, and their asset growth was faster than the rich, and this will be done again.

He also addressed corporate executives: "We understand the high uncertainty now, but within 90 days we will release specific directions for tariffs, tax cuts, and regulatory relaxation. Please give us a little more time."