Trade war with China not 'sustainable': US Treasury Secretary

WASHINGTON: United States 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 US and China had yet to formally start. Trump placed import taxes of 145% on China, which has countered with 125% tariffs on US goods. Trump has placed tariffs on several dozen countries, causing the stock market to stumble and interest rates to increase on US debt as investors worry about slower economic growth and higher inflationary pressures.

"I do say China is going to be a slog in terms of the negotiations," Bessent said according to a transcript obtained by AP. "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.