Core Truth
U.S. Treasury Secretary, Scott Bessent, has said that the ongoing tariffs showdown against China is unsustainable.
Bessent anticipates a “de-escalation” of the trade war between the world’s two largest economies.
He however in a private speech in Washington for JPMorgan Chase, also cautioned that talks between the United States and China had yet to formally start.
Trump placed import taxes of 145% on China, which has countered with 125% tariffs on U.S. goods.
Trump has placed tariffs on several dozen countries, causing the stock market to stumble and interest rates to increase on U.S. debt.
This is as investors worry about slower economic growth and higher inflationary pressures.
Details of the speech were confirmed by two people familiar with the remarks who insisted on anonymity to discuss them.
“I do say China is going to be a slog in terms of the negotiations,” Bessent said according to a transcript obtained by The Associated Press.
“Neither side thinks the status quo is sustainable.”
The S&P 500 stock index rose after Bloomberg News initially reported Bessent’s remarks.
The Trump administration has met for talks with counterparts from Japan, India, South Korea, the European Union, Canada and Mexico, among other nations.
But Trump has shown no public indications that he plans to pullback his baseline 10% tariff.
Rather, he has insisted that other nations cut their own import taxes and remove any non-tariff barriers that have hindered exports from the U.S.
