How new U.S. Tariffs could put 10 million Chinese jobs at risk

Speaking from the White House, he mentioned that the sustained tariffs on Chinese goods might have dire consequences for the Asian economy. The situation points to unsustainability for China's market if current tariff measures remain in place, he suggested.

"I think that over time we will see that the Chinese tariffs are unsustainable for China," Bessent said. He noted that if tariffs are maintained, it could lead to significant job losses, up to 10 million.

However, a reduction in tariffs might still result in around 5 million jobs being affected. Bessent emphasised the trade imbalance, reminding that the U.S. imports far more Chinese goods than it exports in return.

"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," he added. This presents a challenging situation for Chinese policymakers as they weigh the economic fallout of the tariffs.

The backdrop to these comments dates back to President Trump's announcement in early April, when he instituted broad tariffs targeting several countries. His administration accused these nations of unfair trade practices. Just days later, tariffs on Chinese products rose sharply to 145%, while reciprocal tariffs for other countries were scaled back temporarily to 10%.

Bessent also hinted at an emerging trade deal with India and potential agreements with other Asian nations, indicating proactive steps in diplomacy. "They have been the most forthcoming in terms of doing the deals," he remarked. This follows Vice President JD Vance's earlier discussions with Indian Prime Minister Narendra Modi, which appeared promising for future economic cooperation.

Following Vance's visit to India, a statement released noted significant progress made towards a trade agreement that addresses both nations' economic goals.