[Source/Observation Network by Shao Yun]

According to reports on April 23 from Reuters and Axios News, US Treasury Secretary Bessent admitted on the same day that the current form of the trade war with China is "unsustainable"; both sides must first reduce tariffs before negotiations can proceed.

China has always emphasized that if the US side really wants to solve problems through dialogue and negotiation, it should stop threats and blackmail, and conduct dialogue with China on the basis of equality, respect, and mutual benefit.

Bessent delivered a keynote speech at the International Finance Institute (IIF) in Washington on April 23. According to Reuters, he said in an interview with the media after his speech that for these two largest economies in the world, it is crucial to de-escalate the situation to rebalance the trade relationship.

When asked whether this means both countries will reduce tariffs on each other, Bessent said, "I think it is necessary because both sides consider the current tariff levels unsustainable. As I said yesterday, this is equivalent to a trade embargo. Disruption of trade between the two countries is detrimental to either side." "I think both sides are waiting to talk to each other," he added, "...and if tariffs are reduced, I won't be surprised."

The Wall Street Journal reported on April 23 that Trump is considering significantly reducing tariffs on China, which may be cut by half to between 50% and 65%. On the same day, Trump answered reporters' questions in the Oval Office of the White House, saying he hopes to reach an agreement with China. "Otherwise, we set a tax rate and hope they come to contribute; if they don't come, it's fine." Axios News believes that Trump's statement implies that even if China does not lower tariffs, the US may eventually reduce the tariff rates on China.

Local time on April 23, Bessent participated in the IIF event live broadcast screenshot.

The US's tough tariff policies toward major trading partners have heightened concerns about the global economic recession. On April 22, the International Monetary Fund (IMF) released the latest World Economic Outlook report, lowering the global growth forecast for 2025 from 3.3% at the beginning of the year to 2.8%. The report expects the global economic growth rate in 2026 to be 3%, which is lower than the January forecast of 3.3% and also below the historical average of 3.7% between 2000 and 2019.

The report shows that the growth forecasts for developed economies this year and next year are respectively 1.4% and 1.5%, which are 0.5 and 0.3 percentage points lower than the January forecast. Among them, the US economic growth rate is expected to slow down to 1.8% and 1.7% this year and next year, which are 0.9 and 0.4 percentage points lower than previous forecasts respectively.

Axios News pointed out that Trump himself admitted on April 23 that the excessively high tariffs on China have virtually paralyzed Sino-US trade. "This basically means that China is almost not doing business with us because the numbers are too high. When you add this to the product price, many products just cannot be sold," Trump said.

On April 2, Trump signed an executive order on so-called "reciprocal tariffs" at the White House, announcing a 10% "minimum benchmark tariff" on trading partners and higher tariffs on certain trading partners, causing successive fluctuations in the US bond and stock markets. Just a week later, Trump announced a 90-day grace period for most countries and regions to negotiate, but continued to increase the so-called "reciprocal tariffs" on China to 145% (including the 20% tariff previously imposed due to fentanyl issues).

Starting April 12, China raised the tariff rates on imports from the US to 125%. At that time, the Tariff Commission of the State Council and the Ministry of Commerce stated that given the current tariff levels, American goods imported into China have no market acceptance possibility. If the US continues to impose additional tariffs on Chinese goods, China will ignore it.

In response to Trump's various conciliatory remarks, Foreign Ministry spokesman Guo Jiaqun said that China has long pointed out that there are no winners in a tariff war or a trade war, and protectionism has no way out. Cutting off supply chains will only isolate oneself.

"Regarding the tariff war initiated by the US, China's position is very clear. We do not want to fight, but we are not afraid to fight. If we fight, we will see it through to the end; if we talk, the door is open. If the US side really wants to solve problems through dialogue and negotiation, it should stop threats and blackmail and conduct dialogue with China on the basis of equality, respect, and mutual benefit. One-sidedly saying one wants to reach an agreement with China while constantly engaging in maximum pressure tactics is not the right way to deal with China, nor will it work."

This article is an exclusive article by the Observer Network and cannot be reprinted without permission.

Original text: https://www.toutiao.com/article/7496721887843435060/

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