WASHINGTON: 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. Trump placed import taxes of 145 percent on China, which has countered with 125 percent 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.
Details of the speech were confirmed by two people familiar with the remarks who insisted on anonymity to discuss them.
“I do say China is going to be a slog in terms of the negotiations,” Bessent said according to a transcript obtained by The Associated Press. “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 percent 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.
“China firmly opposes any party reaching a deal at the expense of China’s interests,” China’s Commerce Ministry said in a statement.
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 uncertainty over tariffs in the financial markets has also been amplified by Trump calling on the Federal Reserve to cut its benchmark interest rate, with the president saying he could fire Fed Chair Jerome Powell if he wanted to do so.
Leavitt said Trump believes the Fed has by holding rates steady as it awaits the impacts of tariffs “in the name of politics, rather in the name of what’s right for the American economy.”
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US Treasury secretary says trade war with China is not ‘sustainable’
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US Treasury secretary says trade war with China is not ‘sustainable’
- Bessent also cautioned that talks between the United States and China had yet to formally start
- “I do say China is going to be a slog in terms of the negotiations,” Bessent said
Drone strike kills 1 in Russian border region ahead of Ukraine peace talks
One person was killed and two others wounded when a Ukrainian drone struck a car in the Russian border region of Belgorod, local officials said Sunday, ahead of peace talks to end the nearly 4-year-old war in Paris this week.
Belgorod regional Gov. Vyacheslav Gladkov said a young child was among the wounded.
In Ukraine, three people were wounded in the Kharkiv region in drone strikes overnight into Sunday, the country’s State Emergency Service said.
Meanwhile, the death toll from a Russian missile attack on the city of Kharkiv on Friday increased to four when two other bodies were found under the rubble of a building, Kharkiv regional head Oleh Syniehubov wrote on Telegram Sunday.
The latest attacks came after national security advisers from Europe and other allies visited Kyiv on Saturday to discuss security guarantees and economic support, as a US-led diplomatic push to end the war in Ukraine intensifies.
President Volodymyr Zelensky, preparing to travel to Paris for a meeting with partners, said Saturday that work on the peace proposals could now accelerate as Ukraine has shared all documents under discussion with the 18 national security advisers, including those on security guarantees.
He said representatives from Ukraine’s General Staff and military sector would meet on Monday in Paris, followed by a meeting Tuesday of European leaders, where he said he hoped documents on security guarantees would be finalized. He said there also would be meetings with US representatives in Paris.
Belgorod regional Gov. Vyacheslav Gladkov said a young child was among the wounded.
In Ukraine, three people were wounded in the Kharkiv region in drone strikes overnight into Sunday, the country’s State Emergency Service said.
Meanwhile, the death toll from a Russian missile attack on the city of Kharkiv on Friday increased to four when two other bodies were found under the rubble of a building, Kharkiv regional head Oleh Syniehubov wrote on Telegram Sunday.
The latest attacks came after national security advisers from Europe and other allies visited Kyiv on Saturday to discuss security guarantees and economic support, as a US-led diplomatic push to end the war in Ukraine intensifies.
President Volodymyr Zelensky, preparing to travel to Paris for a meeting with partners, said Saturday that work on the peace proposals could now accelerate as Ukraine has shared all documents under discussion with the 18 national security advisers, including those on security guarantees.
He said representatives from Ukraine’s General Staff and military sector would meet on Monday in Paris, followed by a meeting Tuesday of European leaders, where he said he hoped documents on security guarantees would be finalized. He said there also would be meetings with US representatives in Paris.
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