US Treasury Secretary Scott Bessent expressed concerns about the ongoing trade war with China, stating it is unsustainable and likely to lead to a “de-escalation” of tensions. In a private speech for JPMorgan Chase, Bessent warned that talks between the US and China have yet to formally begin.
The remarks were confirmed by two people familiar with the speech, who requested anonymity. According to a transcript obtained by The Associated Press, Bessent said neither side thinks the current situation is sustainable.
Bessent’s comments came as the stock market showed signs of improvement, with the S&P 500 rising 2.5% after news of his remarks broke. However, US President Donald Trump downplayed concerns, saying “we’re doing fine with China” and expressing a desire to maintain a good relationship with Chinese President Xi Jinping.
Trump also suggested that the final tariff rate with China would be substantially lower than its current 145%. The White House has received proposals from other countries for trade deals with the US, with press secretary Karoline Leavitt stating “everyone involved wants to see a trade deal happen.”
However, tensions remain high as China warned other countries against making trade deals with the US that could harm Chinese interests. Trump has called on the Federal Reserve to cut interest rates, which he believes are being held steady too long due to politics rather than economic concerns.
Source: https://apnews.com/article/tariffs-trade-taxes-trump-china-bessent-treasury-66668fa26957ece530a250fa8ea19faa