U.S. Treasury Secretary Questions Sustainability of Trade War with China

U.S. Treasury Secretary Scott Bessent privately expressed concern this week over the long-term viability of the ongoing trade war with China, according to a report from the Financial Times.

Speaking at a closed-door JPMorgan Chase conference in Washington, D.C., Bessent reportedly stated that the current standoff between the U.S. and China is “unsustainable,” and expressed optimism that negotiations between the two sides could begin soon.

A transcript of the remarks, obtained by the Associated Press, quotes Bessent as saying, “I do say China is going to be a slog in terms of the negotiations”.

While Bessent is widely viewed as one of the more hawkish voices within the Trump administration on China policy, his comments suggest a growing recognition within the administration of the risks associated with continued economic escalation.

In his remarks, Bessent also confirmed that no negotiations are currently underway with China, despite recent claims by President Trump that Chinese officials have been calling “a lot” since the tariffs were imposed. Trump had stated last week that he expected a deal to be reached within three to four weeks.

The remarks follow President Donald Trump’s recent decision to pause newly imposed reciprocal tariffs—an action Bessent previously described as a strategic move aimed at isolating China.

Despite the tough public talk, sources indicate there is growing anxiety within the administration over the potential economic fallout of the tariffs. Currently, the U.S. maintains tariffs as high as 145% on Chinese imports, while China has responded with its own 125% tariffs, and has halted purchases of American liquified natural gas and restricted exports of key rare earth minerals.

Beijing has recently warned other nations against siding with Washington, as the U.S. reportedly pushes to lure allies away from Chinese trade ties.

Following Bessent’s remarks, President Donald Trump told reporters from the Oval Office on Tuesday afternoon that tariffs on China “won’t be as high as 145%” and “will come down substantially,” signaling that Washington may be open to easing tensions and reaching a compromise in the ongoing trade war. When asked whether he would take a hardline approach with Beijing, Trump responded, “No,” but added, “We are going to be setting the deal,” indicating he still expects to dictate the terms of any eventual agreement.