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The Secretary of the United States of the Treasury, Scott Bessent, warned on Tuesday that the American-Chinese trade war was “not sustainable” and that countries should defuse their dispute, in comments that supported the financial markets hoping for a trade agreement.
Bessente Party for investors said at a private conference organized by JPMorgan in Washington that he expected Washington and Beijing will reach an agreement in the “very close future”, according to several people familiar with his comments.
But several people familiar with the remarks said that the markets had reacted too much optimistic, noting that the secretary of the Treasury had clearly indicated that there were no commercial talks between Washington and Beijing. Bessent also admitted that any negotiation with China would be “a SLOG”.
THE United States and China Are in the midst of an in -depth trade war after President Donald Trump imposed a total tariff of 145% on goods from China and Beijing retaliated by slapping a 125% levy on American imports.
“No one thinks that the current status quo is sustainable at 145 and 125 (percent),” said Bessent at the conference, according to a person in the room.
“So, I would judge that in the very close future, there will be a de -escalation. And I think that should give the world, the markets, a sigh of relief … We have a embargo now, on both sides.”
Stressing that the reservations of shipping containers had fallen by many, Bessent added: “The objective is not to decline.”
After its remarks, the S&P 500 closed 2.5% more, While the NASDAQ composite increased by 2.7%.
But while a number of countries have contacted the Trump administration since the president has imposed “reciprocal” prices this month, China and the United States have organized any substantial commercial maintenance. Beijing clearly told the White House that she considers Trump's approach as intimidation and that she will not cap.
Asked about Bessent's comments, the press secretary of the White House, Karoline Leavitt, said that the president believed that his administration “was doing very well with regard to a potential trade agreement with China”.
Later Tuesday, Trump said that he was entering an agreement with China – something he said on several occasions – and that the prices “would descend considerably”.
“I think it will work very well,” he told journalists in the oval office.
However, there is no sign that the United States and China are about to start negotiations. Trump wants to face President Xi Jinping directly, but Beijing does not want to risk a telephone call or a meeting until the two parties hammered the contours of a possible trade agreement.
