US Treasury Secretary Scott Bessent predicted a “de-escalation” in the trade war raging on between the United States and China over high tariffs. His claim echoed at a closed-door meeting hosted by JPMorgan Chase on Tuesday.
A person believed to have attended the private investor summit in Washington, D.C. told CNBC and the Associated Press that Bessent firmly believes the US-China tariff war will take big steps towards a resolution in the “very near future.”
US cabinet secretary says neither US and China see the tariff tension as sustainable
“No one thinks the current status quo is sustainable,” Bessent said of the current tariff levels and the US and China’s seemingly never-ending tit-for-tat merry-go-round. The treasury secretary also said at the private event that the economic superpowers’ potential progression towards a de-escalation of their tariff war “should give the world, the markets, a sigh of relief,” adding, “We have an embargo now, on both sides…”
Despite tariff on Chinese imports soaring as sky-high as 145% and China hitting back at Donald Trump’s decision with 125% duties on American goods, Bessent insisted that the president’s plan “isn’t to decouple.” He also noted that negotiations with China are likely to be “a slog.” Nevertheless, he still held on to the belief that neither Washington nor Beijing see these trade tensions as sustainable.
That same day, White House press secretary Karoline Leavitt stood by Bessent’s claims, saying that “we’re doing very well in respect to a potential trade deal with China.” She also pushed that Trump is “setting the stage for a deal with China, and the ball is moving in the right direction.”
Donald Trump responds to Scott Bessent’s claims of ‘de-escalation’ of tariff war
The US president has since, in a way, addressed Scott Bessent’s claims. After repeatedly claiming that conversations between the US and China are underway, an optimistic Donald Trump dropped another update on the issue during a White House news conference. Given the current status of the high tariffs on Chinese goods, he said they will “come down substantially, but it won’t be zero,” insisting that America is “doing fine with China.”
Contrary to the global picture that has arisen since Trump’s Liberation Day announcement, he asserted he would be “very nice” to China. “We’re going to live together very happily and ideally work together,” he said.
On the other hand, China has maintained a cold distance on the official front despite Trump reiterating they’re still on good terms. The Asian country, in turn, warned other nations to steer clear of striking trade deals with the US that could bring forth another slump for China. “China firmly opposes any party reaching a deal at the expense of China’s interests,” the country’s commerce ministry said in a statement.