Bessent believes China impasse over tariffs will de-escalate
Treasury Secretary Scott Bessent told an investor summit on Tuesday that he expects the U.S. and China will de-escalate the impasse over tariffs because it's unsustainable for both countries, FOX Business has learned.
Bessent said that while negotiations haven't started, a deal is possible, a source who attended the investor summit told FOX Business. The summit was closed to the media and public and hosted by JPMorgan Chase. Bloomberg first reported the news.
The treasury secretary added that those trade talks will take time, but the status quo with elevated tariffs isn't viewed as sustainable by either side.
Since taking office in January, President Donald Trump has imposed higher tariffs on China, including 20% duties tied to the fentanyl crisis, plus a 125% "reciprocal" tariff that brings the rate to 145%. Certain goods are also subject to additional tariffs that range between 7.5% and 100%.
The Chinese government retaliated, raising tariffs on the U.S. in several increments to a new rate of 125% as of April 12.
Amid the Trump administration's efforts to start trade talks with trading partners, China has threatened it will take actions against other countries that make deals with the U.S.
"China firmly opposes any party reaching a deal at the expense of China's interest," China's Commerce Ministry said in a statement on Monday. "If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner. China is determined and capable of safeguarding its own rights and interests."
"Appeasement will not bring peace, and compromise will not be respected," the statement continued.
CHINA THREATENS COUNTERMEASURES AGAINST COUNTRIES THAT ‘APPEASE’ US ON TRADE WAR
The Trump administration has said that 75 countries have reached out to the U.S. to negotiate trade deals, while White House press secretary Karoline Leavitt said Tuesday the administration has "18 proposals on paper" for trade deals.
Last week, President Trump said that Washington and Beijing could reach a trade deal in as little as three to four weeks.
"They have reached out a number of times," Trump said, referring to high-level Chinese officials. When asked how frequently they have been in touch in the wake of the U.S. raising tariffs to 145%, the president responded, "A lot."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
China, however, has vowed to fight a trade war "to the end," saying it will only come to the table for talks if the U.S. shows "the right attitude of equality, respect and mutual benefit."
FOX Business' Stephen Sorace contributed to this report.