US Treasury Secretary Scott Bessent downplayed the possibility of a quick trade agreement with the European Union, saying the bloc suffers from a “collective action problem” that’s hampering negotiations.

“I think the US and Europe may be a bit slower,” Bessent said when asked at a Saudi-US Investment Forum in Riyadh about progress on tariff talks.

“My personal belief is Europe may have a collective action problem; that the Italians want something that’s different than the French. But I’m sure at the end of the day, we will reach a satisfactory conclusion,” he continued.

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President Donald Trump’s Treasury chief was more optimistic about agreements with Asian trading partners. He said the US has had “very productive discussions” with Japan, and praised “very forthcoming” conversations with Indonesia as well as a “very good proposal” from Taiwan. He also mentioned talks with South Korea and Thailand.

“On my side of the world, things are going very well,” said Bessent, who is overseeing negotiations with Asian economies.

Bessent over the weekend helped broker an agreement with China to temporarily lower tariffs to work toward a broader agreement, on the heels of a framework with the UK.