Bessent sees de escalation in US China trade tensions talks to be a slog

WASHINGTON - The trade standoff between Washington and Beijing is not sustainable, US Treasury Secretary Scott Bessent said April 22, predicting the tit-for-tat tariff war would de-escalate soon.

Speaking at a closed-door event hosted by JPMorgan Chase, Mr Bessent said the enormous tariffs the world’s two biggest economies placed on each other’s imports amounted to a reciprocal trade embargo.

Mr Bessent was referring to new duties Washington and Beijing have imposed this year.

Since Donald Trump’s White House return in January, the US has slapped additional tariffs of 145 per cent on many products from China.

These include duties initially imposed over China’s alleged role in the fentanyl supply chain and later, over practices Washington deemed as unfair.

Beijing has responded with sweeping counter tariffs of 125 per cent on US goods, in retaliation against Washington’s latest salvo.

Mr Bessent told the event on April 22 that he expects a de-escalation in the near future, according to a person who was in the room.

He noted that the current trade embargo involves both sides.

Such a development should bring markets some relief, he added at the event, which was not open to media.

Wall Street’s major indexes jumped after a news report on Mr Bessent’s comments at the event, which took place on the sidelines of the International Monetary Fund and World Bank’s Spring Meetings.

‘Doing very well’

Mr Bessent said there is much to be done at the end of the day with Beijing. But he noted the need for fair trade and said that China needs to rebalance its economy.

The Treasury chief stressed that the goal is not to decouple with China, adding that Washington wants to stay engaged – in a manner it considers more fair.

He noted that container bookings between both countries have slumped