US Treasury Secretary Bessent: The US will set a global duty level for de minimis imports

United States (US) Treasury Secretary Scott Bessent hit the newswires on Wednesday, giving his thoughts on the US debt ceiling, and also teased around the idea of the Trump administration introducing a “de minimis” tariff level, which would see US companies find some breathing room on tariffs up to a certain level of imports.

Key highlights

Beware of the unintended impact of a Russia sanctions bill.

Give the administration some flexibility here.

I am prepared to roll the tape forward for trading partners negotiating in good faith.

If the debt limit is not sorted, it could be the biggest crisis since 2008-09.

It is unthinkable that a debt-ceiling breach could happen.

The US debt ceiling must be raised and extended.

The bond market functioned very well amid April volatility. The US continues to be the most stable bond market.

April bond volatility never involved stability worries.

The US will set a global duty level for de minimis imports.

China pushed back on de minimis tariffs.

We want a deficit ratio under 4% by end of Trump’s term.

It is impossible to say if all will benefit from the tax bill.

It remains to be seen whether the tax bill adds to US debt.

Trade talks with China will be a much longer process.

Under Biden, China didn’t think it had to stick to the deal.

If prices go up due to tariffs, it will be one-time.

The CPI showed yet another fantastic inflation number.

Market reaction

Overall market impact remains limited as investors focus on inflation data, trade talks, and interest rate cut hopes. US equity markets are broadly rising, and the US Dollar (USD) Index (DXY) has fallen back into recent lows near 98.50.