US Treasury Secretary Scott Bessent believes that the current tariff restrictions between the United States and China cannot be sustained for long by either country, and therefore a de-escalation of the standoff should be expected in the future.
Bessent made this statement during a closed-door event on Tuesday, initially reported by Bloomberg and later confirmed by other American media outlets.
According to the Treasury Secretary, the current situation—where the US has imposed 145% tariffs on Chinese goods and China has responded with 125% tariffs on American goods—is unsustainable.
He expressed optimism that tensions between the world’s two largest economies could ease in the coming months, which would bring relief to the markets.
At the same time, Bessent warned that a broader economic agreement between the US and China might only be reached in approximately two to three years. Such a deal would likely involve changes to China’s economic model, which is currently based on manufacturing at the expense of the US.
The trade war between the US and China, which saw both countries impose tariffs exceeding 100%, has effectively frozen trade between the two economic giants.
According to media reports, the resolution of the trade dispute is being delayed because US President Donald Trump insists on personal negotiations with Chinese leader Xi Jinping to resolve tariff-related issues.
