He states that he never predicts the future, but enterprises should prepare for the worst-case scenario.
Risk Warning
Cryptocurrency investment carries high risks, with potentially volatile prices, and you may lose all your principal. Please carefully assess the risks.
U.S. Treasury Secretary Scott Bessent, during an interview this morning on 6/3, emphasized that the United States is not deliberately escalating tensions with China, but is de-risking and restructuring supply chains in response to China's actions such as "blocking raw material exports". Addressing ongoing concerns about tariffs driving up prices, Bessent noted that inflation data has dropped to a four-year low, wages have increased by up to 8% monthly, energy prices have decreased by 20% annually, and nearly 65% of tariff costs are absorbed by China, not entirely passed on to the American people. Regarding the upcoming 50% steel tariffs, debt ceiling bill, and fiscal deficit issues, he confidently stated: "The United States will absolutely not default, and fiscal matters will remain stable before 2028."
Here's the English translation: Regarding China's failure to release rare earth and critical minerals promised in the Geneva Agreement, Bessent stated: "It could be a systemic issue, or it could be intentional." As for whether Trump and Xi will re-engage in dialogue, Bessent said "news will come soon". JPMorgan's Dimon Claims China Is Not Afraid of the US, Bessent: China Must Recognize Reality JPMorgan CEO Jamie Dimon frankly stated at a forum that "China is not afraid of the US, they are already prepared". Bessent countered: "I respect Dimon, but I disagree with this view. No matter how prepared China is, they must recognize economic reality." Tariff Pass-Through to Consumer Goods? Bessent Says Inflation at 4-Year Low, Wage Growth at 8% Concerns persist about tariffs being passed on to consumer goods. Bessent noted that the government established a "Consumer Goods Price Committee" in March to track inflation indicators, with optimistic results: - Inflation index at 4-year low - Wages grew 8% last month - Food prices declined, egg prices significantly dropped - Energy prices decreased by 20% Refuting Tariff Pass-Through, Claims Chinese Manufacturers Absorb 65% of Tariff Costs Bessent cited a South China Morning Post report indicating that 65% of tariffs are actually absorbed by Chinese suppliers, countering claims of cost transfer to consumers. Regarding Walmart's complaints about tariffs reducing margins to below 3%, Bessent stated: "Corporate reports typically present worst-case scenarios to avoid potential legal issues." Steel Tariff Doubling Impact on Construction? Bessent Suggests Helping Industry Rebirth Trump announced steel and aluminum tariffs will increase to 50% from 6/4, potentially impacting construction. Bessent emphasized this will significantly boost the US steel industry, mentioning a recent inspection with Trump at a Pittsburgh steel plant where worker morale was high. Debt Ceiling Bill Entering Senate, Bessent Says No Default Will Occur Regarding the massive tax reform and debt ceiling bill, Bessent emphasized: "The US will never default, the government won't miss payments. We're discussing and doing what needs to be done." Refuting Dimon's Debt Collapse Claim, Bessent: Gradually Reducing Deficit Through Tariffs and Drug Pricing Responding to JPMorgan's Dimon warning about potential bond market collapse, Bessent dismissed it: "He's always predicted collapses that never happened." He added: - Trump's drug pricing bill could save $1 trillion - Tariff revenues might bring $2 trillion additional income - Administrative goal is to reduce deficit by 2028 for US fiscal stability Risk Warning Cryptocurrency investments carry high risk with potentially volatile prices. You may lose all principal. Please carefully assess risks.
