During a private meeting with investors on Tuesday, Treasury Secretary Scott Bessent expressed optimism regarding potential easing of tensions in the ongoing trade dispute between the U.S. and China. According to a source present, Bessent indicated that he anticipates “there will be a de-escalation” in the trade conflict in the “very near future.”
At the investor summit in Washington, D.C., organized by JPMorgan Chase, Bessent pointed out that the current tariff levels are not sustainable, stating, “The next steps with China are, no one thinks the current status quo is sustainable.”
Following Bessent’s comments, stock markets, which were already on a recovery path from a previous decline, surged higher as the news spread.
Bessent conveyed that the possibility of a trade de-escalation between the two economic giants “should give the world, the markets, a sigh of relief,” according to an attendee of the meeting.
Bessent acknowledged that negotiations with China could be challenging, referring to the process as potentially “a slog.” However, he reiterated that neither country believes the current situation can persist.
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