US Treasury chief expects China tariff standoff to ease
3 Min Read
The US Secretary of the Treasury said that he expects the faceoff between the US and China to settle down, during a closed-door JPMorgan event.
-
Treasury Secretary Scott Bessent and Defense Secretary Pete Hegseth listen as Trump speaks before a luncheon with Italy's PM Giorgia Meloni in the Cabinet Room of the White House, April 17, 2025 (AP)
United States Treasury's Scott Bessent said that the trade standoff between Washington and Beijing is not sustainable and predicted the tit-for-tat tariff war would soon de-escalate.
Bessent stated that the massive tariffs imposed by the world's two largest economies on each other's goods effectively function as a mutual trade embargo while speaking at a private JPMorgan Chase event on Tuesday, referring to the duties Washington and Beijing imposed on each other following the inauguration of Donald Trump.
Additionally, he reportedly told attendees that he anticipates a near-term de-escalation in trade tensions while adding that such a development would likely provide some relief to markets, according to a participant in the event, which was closed for media.
The Treasury Secretary expressed optimism about reaching a significant deal with Beijing in time while emphasizing the importance of fair trade practices and China's need to rebalance its economy, though he clarified that the ultimate objective isn't economic decoupling but rather establishing more balanced trade relations.
No comment from Chinese authorities has been issued regarding the US comments.
China refuses subjugation, will continue defending interests
The tit-for-tat measures are the latest in a series of tensions between United States and China, touching on broader issues ranging from trade to human rights and geopolitical competition in Asia.
As both sides remain firm in their positions, prospects for diplomatic de-escalation remain uncertain.​
Earlier in April, at the peak of the trade war between Beijing and Washington, the Chinese government issued a firm warning to the US, asserting that pressure and threats are not the proper way to engage with China.
"We do not provoke trouble, but we are not afraid of it either. Pressure and threats are not the right way to deal with China. China is already taking and will continue to take decisive measures to protect its sovereignty, security, and development interests," the government said in a statement carried by state broadcaster China Central Television.
China warns US tariffs bringing instability
US tariffs will “inflict serious harm” on poorer nations, China’s Commerce Minister Wang Wentao warned, according to a statement from the ministry released April 12.
The warning came amid escalating tit-for-tat tariffs between Washington and Beijing, fueling concerns of a deepening trade war between the world’s two largest economies in a conflict that has rattled global markets.
Economists caution that disruptions in trade between the closely linked US and Chinese economies could drive up consumer prices and potentially trigger a global recession.
"These US 'reciprocal tariffs' will inflict serious harm on developing countries, especially the least developed countries, and could even trigger a humanitarian crisis," Wang told World Trade Organization chief Ngozi Okonjo-Iweala during a call on April 11, the statement said.
"The United States has continuously introduced tariff measures, bringing enormous uncertainty and instability to the world, causing chaos both internationally and domestically within the US," Wang added.
