US Treasury chief expects China tariff impasse to de-escalate, offer markets relief: Source

WASHINGTON – The trade stand-off between Washington and Beijing is not sustainable, US Treasury Secretary Scott Bessent said on April 22, as President Donald Trump predicted sky-high tariffs on many Chinese imports would come down “substantially”.

Speaking at a closed-door event hosted by JPMorgan Chase, Mr Bessent said the enormous tariffs that the world’s two biggest economies placed on each other’s imports in 2025 amounted to a reciprocal trade embargo, but that he expects de-escalation.

Since Mr Trump’s White House return in January, the US has

slapped additional tariffs of 145 per cent

on many products from China.

These include duties initially imposed over China’s alleged role in the fentanyl supply chain and later over practices that Washington deemed unfair.

On April 22, Mr Trump acknowledged that 145 per cent is a “very high” level, and that this will “come down substantially”.

“They will not be anywhere near that number,” he said, adding, however, that “it won’t be zero”.

Beijing has responded to Washington’s latest salvo with sweeping counter-tariffs of 125 per cent on US goods.

Mr Bessent told the JPMorgan event that he expects a de-escalation in the near future, according to a person who was in the room.

Such a development should bring markets some relief, he added at the event, which was not open to the media.

Wall Street’s major indexes jumped after a news report on Mr Bessent’s comments at the event, which took place on the sidelines of the International Monetary Fund and World Bank’s Spring Meetings.

‘Doing very well’

Mr Bessent said there is much to be done at the end of the day with Beijing. But he noted the need for fair trade and said that China needs to rebalance its economy.

The Treasury chief stressed that the goal is not to decouple with China, noting that container bookings between both countries have slumped recently as trade tensions heated up.

On April 22, White House Press Secretary Karoline Leavitt told reporters that Washington is “doing very well in respect to a potential trade deal with China”.

“The President and the administration are setting the stage for a deal,” she added, noting that “the ball is moving in the right direction”.

She said the feeling is that parties involved want to see a trade deal happen.

As global finance ministers and central bankers converge in Washington this week, all eyes are on the progress of trade talks on the sidelines of the spring meetings as countries grapple with Mr Trump’s new and wide-ranging tariffs. AFP