U.S. Treasury Secretary Scott Bessent warned Tuesday that the ongoing trade war with China cannot continue indefinitely.
Speaking at a private event hosted by JPMorgan Chase, Bessent signaled hopes for a “de-escalation” but admitted that formal negotiations with China have yet to begin.
The United States has imposed tariffs of 145% on Chinese imports, prompting China to retaliate with 125% duties on US goods.
“These negotiations with China will be a slog,” Bessent said, according to a transcript obtained by The Associated Press. “Neither side thinks the status quo is sustainable.”
Market reaction was swift—Bloomberg’s initial report of Bessent’s remarks sparked a rise in the S&P 500 index.
President Trump’s sweeping tariffs affect dozens of countries, rattling global markets and fueling investor fears of slowing growth and rising inflation.
Despite mounting pressure, Trump has not indicated any plans to reduce his baseline 10% tariff, demanding reciprocal trade actions from other nations.
So far, his administration has engaged in discussions with Japan, India, South Korea, the European Union, Canada, and Mexico.
Bessent’s cautious optimism paints a portrait of a trade strategy at a crossroads—one grappling with economic strain and political rigidity.