U.S. Treasury Secretary Scott Bessent has signaled a possible turning point in the escalating tariff standoff between the United States and China, but cautioned that any resolution will be a "slog" rather than a swift fix
Speaking privately to investors at a JPMorgan summit in Washington, Bessent described the current trade relationship as unsustainable, with the U.S. imposing tariffs as high as 145% on Chinese imports and China retaliating with 125% duties on American goods He emphasized that neither side considers the status quo viable, likening the situation to an economic embargo
Despite the tough rhetoric and ongoing high tariffs, Bessent expressed optimism that de-escalation is likely in the near future, noting that both countries recognize the need for change However, he warned that negotiations with Beijing have not yet begun and are expected to be lengthy and challenging
Bessent’s remarks, coupled with President Trump’s recent hints at reducing tariffs, have sparked a surge in stock markets as investors anticipate a possible thaw in the trade war Still, with China vowing to retaliate against any deal it sees as unfair, the path forward remains uncertain
For now, all eyes are on the next moves from Washington and Beijing as the world’s two largest economies weigh their options in a standoff that has global implications.
