Bessent Assails IMF and World Bank, Urges China to Re-balance/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Treasury Secretary Scott Bessent said a major U.S.-China trade deal is possible. He called for IMF reforms and deeper global cooperation under “America First.” Retail leaders warn Trump his tariff policies could lead to empty shelves.
Bessent Calls for China Trade Deal, IMF Reform, and Global Economic Balance — Quick Looks
- China Trade Talks: Bessent sees “opportunity for a big deal”
- Tariff Impact: 145% U.S. tariffs on Chinese goods, 125% Chinese tariffs remain
- Retail Concerns: CEOs warn Trump of looming supply shortages
- IMF Remarks: Bessent says the fund has lost focus, calls for reform
- Global Message: “America First” is not “America Alone,” Bessent stresses
- Market Impact: Softer rhetoric on Fed and China stabilizes Wall Street
Bessent Pushes for Major China Deal, Urges IMF Overhaul in Call for Global Reset
Deep Looks
WASHINGTON, Apr. 23, 2025 — U.S. Treasury Secretary Scott Bessent struck a notably collaborative tone Wednesday, signaling that a breakthrough in U.S.-China trade relations could be close while calling for sweeping reforms to the International Monetary Fund and World Bank during remarks at the Institute of International Finance (IIF) in Washington.
“There is an opportunity for a big deal,” Bessent said, referring to ongoing trade negotiations with China. He cited longstanding grievances such as currency manipulation and non-tariff barriers as key issues still under discussion.
The comments came as China continues to face 145% tariffs on most of its goods entering the U.S., with 125% retaliatory duties on American exports to China. President Donald Trump has previously said these measures are essential for correcting economic imbalances and enforcing reciprocity.
While Trump declined to confirm whether he had spoken directly with Chinese President Xi Jinping, he did suggest administration-level talks were ongoing.
A Shift in Global Economic Tone
At the IIF event, Bessent emphasized that the “America First” agenda is not isolationist, countering critics who see the U.S. turning inward under the Trump administration.
“America First does not mean America alone,” Bessent said. “It is a call for deeper collaboration and mutual respect among trade partners.”
He added that U.S. engagement with institutions like the IMF and World Bank is critical to restoring fairness and long-term global stability. He stressed that his administration seeks to “reconnect these institutions with their founding missions.”
“Make the IMF the IMF Again”
Bessent’s most pointed remarks came when addressing the current state of the International Monetary Fund, accusing it of straying from its core purpose.
“Today’s IMF has been whistling past the graveyard,” Bessent said. “It spends disproportionate time and resources on climate change, gender, and social issues. These are not its mission.”
He called for a return to economic fundamentals, urging the fund to focus on macroeconomic stability and sovereign debt management — the foundation on which it was created.
On China: “A Nation in Need of Rebalancing”
Bessent singled out China as a key global player facing significant internal challenges.
“China, in particular, is in need of a rebalancing,” he said, referencing the country’s overreliance on exports. He added that its structural imbalances are contributing to “an evermore unbalanced global economy.”
He criticized international bodies that still treat China as a “developing country,” calling such classifications “absurd” in light of its global economic stature.
Bessent said the world’s second largest economy should not be treated like a developing country.
“I have a teenager who sometimes wants to be treated like a child, sometimes wants to be treated like an adult,” he said. When it comes to China, “it’s an adult economy.”
Bessent said earlier in his speech to the Institute of International Finance in Washington that despite friction between Beijing and Washington, “there is an opportunity for a big deal here” between the world’s two biggest economies.
He said the administration wants to boost U.S. manufacturing while China increases domestic consumption, making its economy less reliant on flooding the globe with cheap exports.
“If they want to rebalance, let’s do it together,” he said. “This is an incredible opportunity.”
Markets Respond to Talk of De-escalation
Bessent’s comments helped calm financial markets after a turbulent week. On Tuesday, he had privately told banking executives that de-escalation with China was imminent. The remarks fueled optimism and lifted major indexes across Europe, Asia, and the U.S.
Wall Street had been reeling from Trump’s repeated clashes with Federal Reserve Chair Jerome Powell and the continued escalation of the trade war with China. But Bessent, seen as a stabilizing force in the administration, played a key role in softening rhetoric, including Trump’s statement that he has “no intention” of firing Powell.
Retailers Warn of “Empty Shelves”
Just a day earlier, Bessent had helped organize a private meeting between President Trump and top retail executives, including leaders from Walmart, Target, Home Depot, and Lowe’s. The CEOs delivered a stark message: unless tariffs are reduced soon, U.S. store shelves may begin to empty due to supply chain disruptions.
Walmart CEO Doug McMillon warned that the trade war had already begun hurting operations and could worsen in the coming months.
Sources familiar with the meeting said Bessent aimed to give the president a direct view into the real-world consequences of his tariff policies.
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