US Treasury Secretary Scott Bessent stated that all options related to investments in China remain open, including the potential for blocking outbound investments if required. Tariff numbers will be assigned to each country on April 2, with some nations likely facing lower tariffs.
Reciprocal tariffs may not automatically be set at 25%, as these could be combined with existing tariffs on steel and aluminium. It is noted that 15% of countries will account for the majority of tariffs. Bessent indicated that the economy is currently healthy, dismissing concerns about a possible recession. The discussion also included a reconsideration of the US sanctions regime against Russia.
Uncertainty In Investment Policies
Bessent’s remarks suggest that there is still uncertainty regarding how investment policies towards China might develop. The statement that all options remain open signals that further measures could be introduced depending on economic and political shifts. That means any future changes are not predetermined, but rather depend on circumstances that could unfold in the coming months. For those tracking policy adjustments, this openness presents both opportunities and risks.
The tariff allocations, scheduled for early April, will not be universally applied at the same rate, which carries different implications for international trade. Some nations may benefit from reduced tariff burdens, while others could see additional costs applied. Given that only a small fraction of countries will account for most of the tariffs, the impact will not be spread evenly across global markets. The nature of these tariffs also has to be considered alongside existing policies on metals such as steel and aluminium, meaning that the overall effect will be shaped by previous regulatory frameworks.
Bessent’s assurance that the economy remains strong dismisses concerns about an imminent downturn. However, this does not mean all sectors are unaffected by recent developments. Certain industries may experience shifting conditions due to revised tariffs or adjustments to trade relationships. The review of sanctions targeted at Russia could add another element to market movements, depending on whether adjustments lead to reduced or increased restrictions.
Implications For Future Market Conditions
For us, these factors illustrate how policy decisions could influence future market conditions. It would be short-sighted to rely on existing tariff structures without considering potential adjustments in early April. Likewise, investment flows may be affected by policy shifts should further action be taken on outbound capital towards China. Any revision of the sanctions framework could also have knock-on effects, making flexibility a key part of any strategy in the coming weeks.
