US Treasury Secretary Bessent: There doesn't have to be decoupling with China, but there could be

United States (US) Treasury Secretary Scott Bessent noted on Monday that the US isn't even close to any emergency scenarios that nobody was even worried about to begin with, and reiterated that the US will be pursuing "fair" trade negotiations with countries looking to secure exemptions from tariffs that the Trump administration sold as being unavoidable, and necessary to balance the US government budget.

Key highlights

There's a big menu of challenges to address.

I am here in Argentina to show support, we'll see on talks.

The Trump Administration is focused on Latin America, and is trying to prevent what happened in Africa with China and its policies there.

Argentina could pay off the China swap if they build reserves.

I am meeting with the Spanish Economy Minister this week. That is not a trade sitdown.

There will be a first-mover advantage on trade talks.

Others will want protection against a China export flood.

US tariffs on China are far from a joke.

Trump & China’s President Xi have very good relationship.

Tariffs on China are big numbers, no one thinks they're sustainable and wants them to remain.

I am not seeing a dumping of US treasuries.

I saw increased foreign competition at US debt auctions.

This is one of those occasional shocks you get in the trading community.

There doesn't have to be decoupling with China, but there could be.

I am not concerned about the dollar losing its haven status.

The US is still a global reserve currency.

We're a long way from a 'break the glass' situation.

We're a long way from needing contingency plans.

The US will negotiate tariff rates with partners in good faith, and will run a robust process.

The VIX spiked and has likely peaked.