US Treasury Secretary Bessent Expects Several Large Trade Deals Before Tariff Pause Ends

U.S. Treasury Secretary Scott Bessent expressed optimism about upcoming trade negotiations, anticipating several large deals to be announced soon as the 90-day tariff pause imposed by President Trump approaches its end. While many Asian countries have engaged in good faith negotiations, the European Union remains a challenge due to its "collective action problem" stemming from the diverse interests of its 27 member states. Bessent highlighted positive developments in talks with Germany, noting the responsiveness of the German Finance Minister and potential for a U.S.-Germany reset under Chancellor Merz. He also mentioned ongoing and expected in-person negotiations with China and progress with India, emphasizing that tariff rates announced in April serve as ceilings contingent on good-faith negotiations. President Trump’s recent threat to impose a 50% tariff on EU goods reflects frustration with the slow pace of EU talks, intended to accelerate negotiations. Overall, Bessent forecasts that trade discussions and resulting agreements will soon alleviate tariff uncertainties impacting the global business community.