On Tuesday, April 22, US media reported that the US Treasury Secretary told investors in a closed-door meeting that the US-China tariff war is expected to “cool down in the near future.”
Treasury Secretary Scott Bessent attended a private investors summit hosted by J.P. Morgan in Washington, D.C. on Tuesday. He mentioned that negotiations with China have not yet started but there is a possibility of reaching an agreement. The event was not open to the public or media.
Reports from Bloomberg and CNBC cited sources familiar with the matter.
According to a source quoted by CNBC, the Secretary mentioned, “The next step with Beijing, no one believes that the current (tariff levels) status quo is sustainable.”
After reports of Bessent’s remarks surfaced, the US stock market bid farewell to the previous day’s sell-off and experienced a significant increase. As of 12:28 PM, the S&P 500 index rose by 2.9%.
Sources revealed that Bessent expressed his belief that the prospects of easing tensions between economic giants “should help the world and the markets breathe a sigh of relief.”
The US Treasury Secretary delivered these remarks during the International Monetary Fund and World Bank Spring Meeting, where finance ministers and central bank governors from various countries gathered to assess the impact of the US trade war.
Bessent pointed out that the top two economies in the world (referring to the US and China) have essentially imposed a trade embargo on each other.
The US has raised tariffs on Chinese imports to 145%, and China retaliated by imposing a 125% tariff on American goods.
Despite the high tariffs imposed by both sides, Bessent emphasized that Trump’s policy objective is “not to decouple.”
He noted that negotiations with China might be “very difficult,” but both sides have acknowledged that the current situation is “not sustainable.”