At a White House briefing on Tuesday, Treasury Secretary Scott Bessent warned that China could see huge job losses if it fails to roll back its high tariffs. 

Speaking to reporters, Bessent laid out stark figures showing how a prolonged trade dispute would hit the world’s second-largest economy. He said that if U.S. tariffs remain at the current level of 14%, estimates suggest China could lose up to 10 million jobs “very quickly.” Even a modest reduction in tariffs, he added, would still put about 5 million Chinese jobs at risk.

“We are the deficit country,” Bessent reminded the audience. “They sell almost five times more goods to us than we sell to them. So the onus will be on them to take off these tariffs. They’re unsustainable for them.”

Pressed on whether the U.S. is holding direct talks with Beijing to resolve the standoff, Bessent offered no specific details. China has repeatedly denied that negotiations are underway, despite remarks from President Trump indicating otherwise.

“I’m not going to get into the nitty-gritty again of who’s talking to whom,” Bessent said. “But as I said, I believe for the Chinese, these tariffs are unsustainable.”

Beyond China, the secretary noted progress on other trade fronts. He said the US is on the brink of a deal with India and that he could already see the “contours of a deal” forming with the Republic of Korea. He also cited “substantial” discussions with Japanese officials.

Bessent says that the EU should roll back digital taxes on US tech firms

Turning to Europe, Bessent said that any agreement there must include a rollback of digital taxes aimed at US technology firms. Those levies, he said, should come down as part of broader trade talks.

This week also marks President Trump’s second 100th day in office, a milestone the White House is eager to celebrate. Yet that celebration has been muted by reports that the stock market has seen its worst start for a president in decades.

Bessent sought to calm the volatile market by promising more clarity on deals in the weeks ahead. “I think the aperture of uncertainty will be narrowing,” he said. “As we start moving forward, announcing deals, there will be certainty. Though certainty is not necessarily a good thing in negotiating.”

He pointed to data from money manager Vanguard showing that individual investors have largely held firm, while institutional investors “have panicked” amid the trade dispute. “Individual investors trust President Trump,” he noted.

On the tax front, Bessent said business leaders could expect greater certainty once the administration moves ahead with making the 2017 Tax Cuts and Jobs Act permanent. “The tax bill is moving forward,” he said. “It will give permanence to the 2017 Tax Cuts and Jobs Act, which will give American businesses certainty. It will give American people certainty.”

Bessent also reported a “good meeting” on Monday with what he called the “Big Six,” including NEC Director Kevin Hassett, House Speaker Mike Johnson, Senate Majority Leader John Thune, House Ways and Means Chair Jason Smith, and Senate Finance Chair Senator Mike Crapo.

He also suggested that revenue from existing tariffs could help cover new tax proposals championed by the president. These include measures such as eliminating taxes on tips, Social Security benefits, and overtime pay, and restoring interest deductibility for American-made autos. President Trump has already mentioned plans to ease the impact of tariffs on automakers.

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