US Treasury Secretary Scott Bessent stated Tuesday that the ongoing trade war with China is “unsustainable,” predicting a potential de-escalation between the two economic giants.
However, in a private address, Bessent cautioned that formal talks had yet to commence.
The Trump administration’s tariffs on Chinese goods, and China’s retaliatory measures, have raised concerns about economic growth and inflation.
Bessent acknowledged the challenging nature of negotiations with China, noting that “neither side thinks the status quo is sustainable.”
His remarks, reported by Bloomberg News, prompted a rise in the S&P 500 stock index.
While the Trump administration has engaged in trade discussions with various nations, there are no public indications of a planned rollback of the current 10% baseline tariffs.
The administration continues to press for other countries to reduce their import taxes and eliminate non-tariff barriers to US exports.
