Bessent: US-China Tariffs Near Breaking Point

U.S. Treasury Secretary Scott Bessent stated at a closed-door investor event that the ongoing tariff standoff between the U.S. and China, involving tariffs as high as 145% on Chinese goods and 125% on U.S. goods, is unsustainable and likely to de-escalate. He described the current trade relationship as a 'two-way embargo' and expressed optimism about a potential deal and economic rebalancing. However, Bessent cautioned that formal negotiations have not begun and significant challenges remain, as both sides must make substantial compromises. The Trump administration reiterated that it does not intend to decouple the two economies. Bessent's comments contributed to rallies in global markets, particularly in U.S. and Australian stocks, reflecting optimism about easing trade tensions. Both countries seem aware that a prolonged standoff is untenable, but initial steps toward dialogue have yet to materialize.