According to the U.S. Treasury Secretary Scott Bessent, who spoke to investors on Tuesday, predicted that the ongoing tariff spat with China will one day devolve into a quiet standoff, not just an explosion of greater tensions and retaliatory actions back and forth. Bessent said this at an investors’ summit behind closed doors organized by JPMorgan Chase and private to those present-informal, private speaking. He added the caveat that no formal negotiations have even yet been initiated but made clear that neither side considers the present set-up sustainable.
“The status quo does not last forever,” one of the sources at the summit quoted Bessent as saying. “And in the end both sides want the economy not to be injured too long by it not being used.”
Tariffs mount on both sides
Almost straight from handover from the Republican president after being sworn in office in January, the administration had continuously increased tariffs on the imports coming from China, citing different wide-ranging reasons, including the ongoing fentanyl crisis and trade imbalance. The latest are a 20% tariff linked to fentanyl and a 125% “reciprocal” tariff. These increase duties in some specific cases to an astounding 145%. Others are thrown about duties ranging between 7.5% and 100%.
And China has put up its own tariffs. From April 12, China hiked tariffs imposed on US imports to 125% and pledged to retaliate with countermeasures on third-country establishments that struck trade arrangements favorably with the US.
Strong warnings from China
Earlier this week, the Ministry of Commerce in China sounded this loud warning: “If any country signs an agreement at the expense of China’s interests, China will take countermeasures. Appeasement will not bring peace and compromise will not work.”
Beijing has made it clear that it will not resume negotiations unless the US approaches the talks with “equality, respect, and mutual benefit.” That statement clearly alerts the rest of the global community to the geopolitical stakes in the process, with China asserting its readiness even “to fight to the end” if necessary Trump Administration Pursues New Trade Deals
Despite the standoff with China, President Trump has expressed optimism about progress on other fronts. The White House states that there are more than 75 countries interested in trade agreements with the U.S., with 18 proposals under consideration. The administration has made it clear that reciprocal trade deals are an essential element of its economic strategy.
Last week, Trump said a deal with China might be possible “within three to four weeks,” adding that Chinese officials had reached out “a lot” since the new tariffs were announced.
Bessent calls for patience
While hopeful, Secretary Bessent has urged patience. “Negotiations like these don’t happen overnight,” he said, according to summit attendees. “This will take time, but there is a path forward if both countries are willing to engage.”
So far, both countries seem locked in a high-stakes game of economic brinkmanship, with ripples in global markets and supply chains.
As Biden-era trade policies yield another Trump economic agenda, all eyes pivot to the next move from Washington and Beijing. Whether solutions will come quickly or be dragged out over months remains an open question.
