This is coming from the treasury secretary.
U.S. Treasury Secretary Scott Bessent told investors during a private meeting on Tuesday that he expects a reduction in trade tensions between the United States and China in the near term. Speaking at an investor summit in Washington, D.C., hosted by JPMorgan Chase, Bessent expressed optimism that the current standoff in tariffs would not continue much longer, according to a source present at the event.
Bessent acknowledged that the current high tariff levels imposed by both countries—145% on Chinese imports to the U.S. and 125% on American goods entering China—are not sustainable. He emphasized that both governments understand the need for change and signaled that a shift in policy is on the horizon. Following reports of Bessent’s remarks, financial markets responded positively, with stocks climbing higher after a previous day of losses.
During his comments, Bessent clarified that the goal of the current trade strategy is not to sever economic ties with China, but rather to renegotiate fairer terms. He admitted the road to any resolution may be slow and complex, describing the process of negotiating with Beijing as “a slog.” Nonetheless, he maintained a hopeful tone, saying that any signs of easing trade tensions should provide reassurance to global markets.
Later the same day, White House press secretary Karoline Leavitt reinforced Bessent’s message, stating that President Donald Trump remains confident about the direction of ongoing trade matters. While no formal talks have been announced, Leavitt said the administration is working to position itself for a favorable agreement with China. She added that the president believes progress is being made, even if no direct communication with Chinese President Xi Jinping has been confirmed.
Despite the lack of immediate negotiation details, both Bessent and Leavitt’s statements suggest a potential softening in the trade conflict that has weighed heavily on global markets. Investors and international observers are now watching closely for official developments in U.S.-China trade discussions.
