Countries are exploring possible deals with the United States to ease tariff rates, which the US treasury secretary said this week were a crucial part of Donald Trump’s economic policy, as the president suddenly ordered a probe into potential new tariffs on copper imports that looks to have China in its sights.
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US Treasury Secretary Scott Bessent on Tuesday called tariffs “an essential component in the strategy” as “Trump is seeking to end the international economic imbalances that have weakened American economic security [and] exported our industry”.
His comments came after meeting with Australia’s treasurer, Jim Chalmers, who has asked the Trump administration for an exemption from tariffs on steel and aluminium in view of a two-to-one trade surplus with the US, and in light of the fact that “Australia’s got a free-floating currency” that Chalmers said is not manipulated.
And analysts said Australia’s request could prompt other countries, including China, to seek their own exemptions from tariffs, which add costs to exporters that sell in the American market.
“Trump is a businessman for whom negotiations can decide how much, so talks with him can prevent a high tariff rate,” said Zhao Xijun, a professor of finance at Renmin University in Beijing.
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However, Zhao cautioned that “China’s ante for negotiations would be a bit more, the scale being higher”.