Treasury’s Bessent Ties EU $600 B Deal to Tariff Flexibility, Eyes China

U.S. Treasury Secretary Sarah Bessent said the Biden administration will "closely monitor" a recently announced European Union commitment to invest about $600 billion in projects that include new manufacturing plants in the United States and funding for defence and agriculture. Speaking in a CNBC interview, Bessent described the arrangement as the "deal of the century" on paper and noted that President Donald Trump views the pact as a positive step for trans-Atlantic trade. Bessent cautioned that Washington could raise tariffs on European goods if the bloc fails to meet its obligations under the agreement, adding that tariff rates "remain subject to change." She also indicated that she "wouldn’t be surprised" if Europe imposes its own duties on Chinese products amid growing concerns about Beijing’s trade practices. Turning to China, the Treasury chief reiterated that additional U.S. tariffs may be necessary to compel policy changes in Beijing, saying current measures might not be sufficient. The remarks suggest the administration is prepared to tighten trade pressure on multiple fronts while keeping a close watch on the EU’s multibillion-dollar investment pledge.