Headline: Treasury Secretary Bessent Navigates U.S.-China Trade Truce and Swiss Economic Diplomacy

Treasury Secretary Scott Bessent has been actively engaged in international economic diplomacy over the past week, with significant developments in U.S.-China trade relations and meetings with Swiss leadership.

On May 12, 2025, Bessent announced a major breakthrough in U.S.-China economic relations following weekend negotiations in Switzerland. The two economic powers agreed to a 90-day pause on most tariffs, providing temporary relief to markets that had been experiencing volatility since March. This represents a notable shift from the aggressive tariff policies that had earlier threatened to push the economy into recession. In his first interview since the meeting, Bessent indicated that additional discussions between the countries are planned.

The Treasury Secretary traveled to Switzerland on May 8, where he met with President Karin Keller-Sutter and Vice President Guy Parmelin. Following this meeting on May 10, Bessent and U.S. Trade Representative Jamieson Greer agreed with Swiss counterparts to accelerate negotiations on reciprocal trade. This visit was a follow-up to earlier discussions during the World Bank Group and International Monetary Fund Spring Meetings.

Speaking at the Saudi-U.S. Investment Forum on May 13, Bessent articulated President Trump's economic vision, stating that the administration wants to "rebalance the American economy back to a manufacturing economy with high precision manufacturing." He emphasized the administration's focus on bringing strategic industries like medicine and semiconductors back to the United States while avoiding a "generalized decoupling" with China.

Bessent has been positioning himself as a moderate influence on Trump's trade policies while advocating strongly for reduced government spending. He has repeatedly used the term "detox" when discussing the need to reduce government expenditures, assembled a dedicated team at Treasury to push for spending cuts, and warned about "hundreds of billions of dollars per year in excess" spending.

Since taking office, Bessent has emphasized that the Trump administration's economic agenda is centered on Main Street rather than Wall Street. In April, he stated, "It's Main Street's turn to hire workers. It's Main Street's turn to drive investment, and it's Main Street's turn to restore the American Dream." This messaging aligns with the administration's broader economic strategy of tax cuts, deregulation, and trade rebalancing.

Bessent has also called for reform of international financial institutions like the IMF and World Bank, criticizing their "sprawling and unfocused agendas" and pledging to leverage U.S. leadership to refocus these organizations on their core mandates.