US Treasury secretary says trade war with China is not 'sustainable'
[April 23, 2025] By
JOSH BOAK and FATIMA HUSSEIN
WASHINGTON (AP) — U.S. Treasury Secretary Scott Bessent said in a
Tuesday speech that the ongoing tariffs showdown against China is
unsustainable and he expects a "de-escalation" in the trade war between
the world's two largest economies.
But in a private speech in Washington for JPMorgan Chase, Bessent also
cautioned that talks between the United States and China had yet to
formally start. U.S. President Donald Trump placed import taxes of 145%
on China, which has countered with 125% tariffs on U.S. goods. Trump has
placed tariffs on several dozen countries, causing the stock market to
stumble and interest rates to increase on U.S. debt as investors worry
about slower economic growth and higher inflationary pressures.
Details of the speech were confirmed by two people familiar with the
remarks who insisted on anonymity to discuss them.
“I do say China is going to be a slog in terms of the negotiations,”
Bessent said according to a transcript obtained by The Associated Press.
“Neither side thinks the status quo is sustainable.”
The S&P 500 stock index rose 2.5% after Bloomberg News initially
reported Bessent’s remarks.
Trump acknowledged the increase in the stock market in remarks to
reporters afterward on Tuesday, but he avoided confirming if he, too,
thought the situation with China was unsustainable as Bessent had said
behind closed doors.
“We’re doing fine with China,” Trump said.
Despite his high tariffs, Trump said he would be “very nice” to China
and not play hardball with Chinese President Xi Jinping.
“We’re going to live together very happily and ideally work together,”
Trump said.
The U.S. president said that the final tariff rate with China would come
down “substantially” from the current 145%.
“It won’t be that high, not going to be that high,” Trump said.
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President Donald Trump watches as Treasury Secretary Scott Bessent
participates in a ceremonial swearing in of Paul Atkins as chairman
of the Securities and Exchange Commission, in the Oval Office of the
White House, Tuesday, April 22, 2025, in Washington. (AP Photo/Alex
Brandon)
 The Trump administration has met for
talks with counterparts from Japan, India, South Korea, the European
Union, Canada and Mexico, among other nations. But Trump has shown
no public indications that he plans to pullback his baseline 10%
tariff, even as he has insisted he's looking for other nations to
cut their own import taxes and remove any non-tariff barriers that
the administration says have hindered exports from the U.S.
China on Monday warned other countries against
making trade deals with the United States that could negatively
impact China.
“China firmly opposes any party reaching a deal at the expense of
China’s interests,” China’s Commerce Ministry said in a statement.
White House press secretary Karoline Leavitt said the Trump
administration has received 18 proposals from other countries for
trade deals with the U.S., adding that “everyone involved wants to
see a trade deal happen.”
The uncertainty over tariffs in the financial markets has also been
amplified by Trump calling on the Federal Reserve to cut its
benchmark interest rate, with the president saying he could fire Fed
Chair Jerome Powell if he wanted to do so.
Leavitt said Trump believes the Fed has by holding rates steady as
it awaits the impacts of tariffs “in the name of politics, rather in
the name of what’s right for the American economy.”
Trump later said that he wanted Powell to “be early” in lowering
rates and that he has no intention of firing the Fed chair, despite
previously suggesting that he would.
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