U.S. Treasury Secretary Scott Pisonte stated that the Trump administration does not intend to take unilateral steps to reduce tariffs imposed on China, emphasizing that any potential reductions will only occur through bilateral negotiations with Beijing and not on a unilateral basis. He added in press statements: "I would not be surprised if we saw a reciprocal reduction in tariffs between the two countries, but any step of this nature would occur within the framework of a mutual understanding.
Pisonte noted that the current tariffs imposed between the United States and China are not sustainable in the long term, but at the same time, they are not on the verge of immediate cancellation.
He clarified that there is no specific timeline for starting trade talks with China, pointing out that any expected dialogue would be at a lower level than the discussions that took place during the administrations of Presidents Donald Trump and Xi Jinping.
Pisonte also declined to comment on a previous report from the Wall Street Journal that discussed the possibilities of new trade negotiations between Washington and Beijing. However, he stressed that tariff negotiations "will not be a prolonged process at all" if serious intentions are present, although he estimates that reaching a comprehensive trade agreement could take two to three years.
Regarding trade relations with other countries, the U.S. Treasury Secretary revealed that the United States is very close to reaching an agreement on tariffs with India, pointing to significant progress in this regard. In contrast, he explained that trade talks with Japan do not include specific targets related to exchange rate levels.
Concerning domestic tax policies, Pisonte predicted that current policies would be extended, with a significant portion of them remaining permanent in the upcoming phase, as part of a strategy aimed at enhancing economic stability and stimulating investment.
Additionally, U.S. Treasury Secretary Scott Pisonte confirmed that the Trump administration seeks to rebalance international financial relations, with a focus on reforming economic relations with China and enhancing the role of multilateral financial institutions in line with their foundational objectives.
During his speech at the International Monetary Fund conference, Pisonte emphasized that the United States looks forward to cooperating with both the IMF and the World Bank, provided they adhere to their original missions of promoting macroeconomic stability and sustainable growth. He considered the excessive focus of these institutions on issues such as climate change and gender equality as "crowding out" real economic work priorities.
In his vision of international relations, Pisonte stated that the Trump administration aims to assist China and the United States in "rebalancing," criticizing what he described as China's "excessive dependence" on an export-driven economic model as a solution to internal crises, urging Beijing to stimulate domestic consumption and enhance internal demand.
Sharp Criticism of China and a Call for Institutional Reforms Pisonte expressed the necessity for the IMF to clearly critique countries that adopt distorted fiscal policies on the international stage, specifically pointing to China, which he said employs non-transparent currency practices. He affirmed that the success indicators for the IMF should be measured by economic stability and growth, not by the volume of loans granted.
He also criticized the World Bank, stating that "treating China as the second-largest economy in the world as a developing country is ridiculous," emphasizing the need to set a timeline for phasing out loans to countries that meet the "graduation" criteria from the developing countries list.
A Firm Stance on Ukraine Reconstruction In another context, Pisonte clarified that any entity that has financed or supplied the Russian war machine will not be eligible for funds allocated for the reconstruction of Ukraine, affirming that the United States will work with its allies to ensure that these funds are directed only to deserving parties.
In conclusion of his remarks, the Treasury Secretary noted that some countries, like Argentina, might not automatically deserve support from the IMF, calling for linking support to the implementation of real reforms. He also emphasized that the World Bank needs to use its resources as efficiently as possible, providing tangible value to member countries instead of being preoccupied with "verbal marketing".
