In a decisive stance amidst recent fluctuations in stock market performance, Treasury Secretary Scott Bessent declared that the U.S. will not alter its trade negotiation approach with China, emphasizing that market volatility will not dictate policy changes. In an exclusive interview at CNBC’s Invest in America Forum, Bessent firmly stated, “We won’t negotiate because the stock market is going down” and assured that the U.S. administration remains committed to taking robust actions against Beijing.
Bessent also criticized a report from The Wall Street Journal that suggested Chinese President Xi Jinping is wagering that the U.S. economy would struggle to withstand a prolonged trade conflict. He labeled the report as “terrible” and accused the newspaper of aligning its narrative with the Chinese Communist Party’s perspective.
The remarks come at a time when stock markets have experienced dramatic shifts, particularly following President Donald Trump’s threats to raise tariffs on Chinese imports in response to China’s new export controls on rare earth minerals. The market reacted negatively, plunging on Friday, but rebounded after Trump appeared to ease his rhetoric over the weekend. However, volatility persisted into Tuesday, with the S&P 500 experiencing significant fluctuations before a sharp decline, coinciding with Trump’s latest accusations against China for its failure to purchase U.S. soybeans.
Bessent acknowledged that while President Trump appreciates a thriving stock market, he believes that its strength is a reflection of effective policies. He highlighted the ongoing surge in investments, particularly in artificial intelligence, as a driver of economic growth. “It’s the policies that we’re talking about here today, in terms of this capex boom,” he stated.
As the landscape of U.S.-China trade relations continues to evolve amidst market turbulence, Bessent’s assertions reinforce the administration’s stance on prioritizing long-term economic considerations over day-to-day market fluctuations. The situation remains dynamic, with traders and analysts closely monitoring developments in trade negotiations and their potential impact on the economy.
