Bessent says it’s up to China to de-escalate the trade war

WASHINGTON – US Treasury Secretary Scott Bessent said “all aspects” of the US government are in contact with China, but that it is up to Beijing to take the first step in de-escalating the tariff fight with the US due to the imbalance of trade between the two nations.

“We’ll see where this goes,” he said in an interview with CNBC. “As I’ve repeatedly said, I believe it’s up to China to de-escalate because they sell five times more to us than we sell to them, so these 125 per cent tariffs are unsustainable.”

The Chinese exempting some goods from tariffs

indicates they are interested in reducing tensions, he said, adding that he has “an escalation ladder in my back pocket, and we’re very anxious not to have to use it”.

Escalation could include an “embargo”, he said.

Mr Bessent said the US has put China to the side for now as it seeks trade deals with between 15 to 17 other countries. He said he would not be surprised if a trade deal with India is the first to be announced.

He also said that US officials met their Chinese counterparts during the International Monetary Fund-World Bank meetings in Washington DC last week to talk about “financial stability” but did not indicate that trade discussions came up during the talks. BLOOMBERG