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Amid the ongoing trade tensions between the United States and China, Treasury Secretary Scott Bessent has indicated that a de-escalation may be on the horizon.
Some shit you should know before you read: It’s no secret that trade tensions between the US and China are at an all-time high. The US has ramped up tariffs on Chinese imports to as high as 145%, while China has responded with retaliatory tariffs reaching up to 125% on American goods. The Trump administration has made it clear that any consideration of lifting these tariffs will require more than just trade-related concessions—issues like cybersecurity breaches, intellectual property theft, currency manipulation, and China’s growing influence in Latin America are all on the table. As of yesterday, China warned that it will retaliate against any country that signs a trade deal with the US at the expense of Chinese interests, calling such actions destabilizing and threatening to impose “reciprocal countermeasures.”
What’s going on now: In a closed-door investor summit hosted by JPMorgan Chase in Washington, D.C., Treasury Secretary Scott Bessent provided a candid assessment of the current state of U.S.-China trade relations, expressing optimism that a de-escalation in the ongoing trade conflict could happen in the near future. Bessent acknowledged that the current tariff stalemate—defined by US rates peaking at 145% and China’s hitting 125%—can’t hold indefinitely. His remarks quickly made waves across markets, driving up US stocks and fueling speculation that a new phase in the trade talks could be approaching.
Bessent also revealed that formal negotiations with Beijing have yet to begin but said the Trump administration sees a potential path forward and is actively preparing for talks down the line. He also pushed back against the notion that the US is seeking to “decouple” from China, stating that the administration’s ultimate goal is not separation but rather a “big, beautiful rebalancing” of both economies.
Despite his hopeful tone, Bessent warned that the road ahead will not be easy, characterizing upcoming talks as difficult. His comments were later echoed by White House Press Secretary Karoline Leavitt, who confirmed the administration’s positive outlook and revealed that the US currently has 18 trade proposals “on paper,” though none specifically with China at this stage.
