Treasury Secretary Scott Bessent said Sunday that despite Chinese denials, key economic figures from both countries met in Washington for the IMF and World Bank spring meetings. However, there’s significant disagreement about whether progress is being made toward a resolution.
Bessent stated that he interacted with his Chinese counterpart on financial stability and global economic early warnings, but it’s unclear if President Trump has spoken with President Xi. He also mentioned that China “plays to a different audience” when denying talks.
Meanwhile, President Trump repeatedly said his administration is talking with China about trade, despite the Chinese side denying it. Bessent has described the trade war as “unsustainable” and stated that the US and China effectively have a trade embargo in place.
Economists warn of the impact of this embargo on retail stores, commodity exports, and other sectors. Apollo chief economist Torsten Slok projected empty store shelves in three weeks and a recession by summer without immediate relief. Former National Economic Council director Gary Cohn echoed similar warnings during an interview.
Americans are losing confidence in Trump’s ability to manage the economy, as shown in recent polls. The Treasury Secretary offered a roadmap for de-escalation, including a de-escalation process that doesn’t necessarily require a final deal.
Source: https://www.axios.com/2025/04/27/trump-china-us-trade-bessent