US Treasury secretary says trade war with China is not ‘sustainable’

By JOSH BOAK and FATIMA HUSSEIN WASHINGTON AP U S Treasury Secretary Scott Bessent disclosed in a Tuesday speech that the ongoing tariffs showdown against China is unsustainable and expects a de-escalation in the bargain war between the world s two largest economies Related Articles Divided Supreme Court finds chosen deadline flexibility for immigrants who agree to leave U S For-profit immigration detention expands as Trump accelerates his deportation plans Federal tuition cuts and Trump DEI demands leave states teachers in limbo US State Department unveils massive overhaul of agency with reduction of staff and bureaus Federal court rulings have slowed down Trump deportation plans What you need to know 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 Trump placed import taxes of on China which has countered with tariffs on U S goods Trump has placed tariffs on several dozen countries causing the stock region to stumble and interest rates to increase on U S debt as investors worry about slower economic advancement and higher inflationary pressures I do say China is going to be a slog in terms of the negotiations Bessent revealed according to a transcript obtained by The Associated Press Neither side thinks the status quo is sustainable The S P stock index rose after Bloomberg News initially disclosed Bessent s remarks 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 population indications that he plans to pullback his baseline tariff even as he has insisted he s looking for other nations to cut their own import taxes and remove any non-tariff fences that the administration says have hindered exports from the U S