U.S. Treasury Secretary Scott Bessent said that high tariffs between the U.S. and China are not sustainable, and said the third quarter of this year is a “reasonable estimate” for achieving clarity on the ultimate level of Donald Trump’s tariffs, reports The Guardian.
His comments on April 23 came as the Trump administration signaled openness to de-escalating a trade war between the world’s two largest economies that has raised fears of a global recession, although there was no sign that negotiations might start anytime soon.
Bessent said the tariffs — 145% on Chinese products and a retaliatory 125% on U.S. products — would have to come down before trade talks can proceed, but said Trump would not make that move unilaterally.
“Neither side believes that these are sustainable levels,” Bessent told reporters April 23. “As I said yesterday, this is the equivalent of an embargo, and a break between the two countries in trade does not suit anyone’s interest.”
Meanwhile, the Wall Street Journal reported that the White House is considering cutting tariff levels to as low as 50% on Chinese imports in a bid to lower tensions. A White House spokesperson dismissed any reports as “pure speculation” and said news on tariffs would come from Trump himself.
Bessent told investors in a private meeting on April 22 that he expects a “de-escalation” of the trade war between China and the US in the “very near future,” adding, “‘America First’ does not mean America alone. To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.”
His comments came on the same day the International Monetary Fund warned that Trump’s tariffs, imposed without Congressional approval, have brought a “major negative shock” to the world economy.