Bessent: Trade War With China Is Not 'Sustainable'

US Treasury Secretary Scott Bessent said in a Tuesday speech that the ongoing tariffs showdown against China is unsustainable and expects a "de-escalation" in the trade war between the world's two largest economies.

• But in a private speech in Washington for JPMorgan Chase, Bessent also cautioned that talks between the United States and China had yet to formally start, the AP reports, citing "two people familiar with the remarks who insisted on anonymity to discuss them." Trump has placed import taxes of 145% on China, which has countered with 125% tariffs on US goods. "I do say China is going to be a slog in terms of the negotiations," Bessent said, according to a transcript obtained by the AP. "Neither side thinks the status quo is sustainable." Stocks rose after Bloomberg 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 pull back his baseline 10% tariff, even as he has insisted he's looking for other nations to cut their own import taxes and remove any non-tariff barriers that the administration says have hindered exports from the US.
• White House press secretary Karoline Leavitt told reporters Tuesday that Trump told her "we're doing very well" regarding a "potential trade deal with China." China on Monday warned other countries against making trade deals with the United States that could negatively impact China.
• Leavitt said the Trump administration has received 18 proposals from other countries for trade deals with the US, adding that "everyone involved wants to see a trade deal happen."
• The IMF warned Tuesday that Trump's tariffs will slow economic growth worldwide.

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