1. Treasury Secretary Scott Bessent said he hopes “there will be a de-escalation” in the trade war between President Donald Trump and China “in the very near future.”
2. Bessent called the high tariffs war between Washington and Beijing unsustainable.
3. Bessent spoke at the private investors summit in Washington hosted by JPMorgan Chase on the sidelines of the World Bank meeting this week.
Treasury Secretary Scott Bessent told investors in a closed meeting on Tuesday that he hopes “there will be a de-escalation” in the trade war between President Donald Trump and China “in the very near future,” a person in the meeting told CNBC.
Bessent stated at the private investors summit in Washington, DC, hosted by JPMorgan Chase, that “No one thinks the current situation is sustainable” with the current tariffs.
Stocks, which had already recovered after the previous day's sell-off, surged after Bessent's remarks were reported.
According to a person in the room who was unnamed to describe a private event, Bessent said he believes that the prospects for de-escalating tensions between the economic superpowers “will help the world and markets breathe a sigh of relief.”
“We currently have sanctions on both sides, right?” he said.
Bessent also emphasized that, although the U.S. raised tariffs on imports from China to 145% and China retaliated with a 125% tariff on U.S. goods, the goal of Trump's policy “is not to decouple.”
The U.S. Cabinet Secretary noted that negotiating with China could be “very difficult.”
But Bessent added that neither side “thinks the current situation is sustainable.”
Later on Tuesday, White House Press Secretary Karoline Leavitt echoed Bessent's optimistic view on negotiations with China, although no official indicated that those negotiations had actually begun.
Leavitt said in a press conference that Trump wants everyone to know that “we are doing very well regarding a potential trade deal with China.”
She said Trump is “preparing for a deal with China” and “everything is moving in the right direction.”
When asked if Trump spoke directly with Chinese President Xi Jinping, Leavitt said she had nothing to share.
PLEASE SUPPORT US BY LIKING, SHARING, COMMENTING, FOLLOWING
SINCERE THANKS!