Treasury Secretary Scott Bessent signaled Tuesday that an Aug. 12 deadline to reach a sweeping U.S.-China trade agreement could be extended, a step toward avoiding an escalation between two economic powerhouses that would roil the global economy.
There's been modest progress toward a trade deal with Beijing restarting rare earth exports and Washington easing up on semiconductor restrictions
Treasury Secretary Scott Bessent (Buddhika Weerashinghe/Bloomberg via Getty Images).
Treasury Secretary Scott Bessent signaled Tuesday that an Aug. 12 deadline to reach a sweeping U.S.-China trade agreement could be extended, a step toward avoiding an escalation between two economic powerhouses that would roil the global economy.
Bessent said in an interview on Fox Business program "Mornings with Maria" that he’ll be meeting with Chinese officials in the Swedish capital of Stockholm for a two-day meeting next Monday and Tuesday.
“We’ll be working out what is likely an extension,” Bessent said. “I think trade’s in a very good place with China.”
He said U.S. officials would be pushing for Beijing to reorient its economy so it relies less on exports for its prosperity. "Hopefully we can see the Chinese pull back on some of this glut of manufacturing that they're doing and concentrate on building a consumer economy," Bessent said.
The U.S. and China at one point imposed punishing tariffs on one other, only to reduce them to allow more time for broad negotiations. There's been modest progress toward a trade deal with Beijing restarting rare earth exports and Washington easing up on semiconductor restrictions.
Bessent added that “a rash of trade deals” will be rolled out in “the coming days,” and expressed confidence in an agreement with Japan in the near future. Yet Trump administration officials have teased similar announcements for months with little to show for it.
So far, only three trade agreements have been struck with the U.K., Indonesia, and Vietnam. The Trump administration has sent letters to over two dozen countries this month warning about double-digit tariffs snapping back in place on August 1 if no agreement is reached to reorient their commerce on what they deem as favorable terms towards the U.S.
Bessent also said in the interview that he didn’t believe Federal Reserve Chair Powell needed to step down, but added the decision was up to him. “There’s nothing that tells me that he should step down right now,” Bessent said. "His term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should.”
A day earlier, Bessent called for a thorough investigation of the Federal Reserve’s operations, siding with the White House as it escalated a campaign against Powell over his management of a $2.5 trillion renovation project.
“While I have no knowledge or opinion on the legal basis for the massive building renovations being undertaken on Constitution Avenue, a review of the decision to undertake such a project by an institution reporting operating losses of more than $100 billion per year should be conducted,” he posted on X $TWTR.
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