Trump's Treasury Secretary Scott Bessent Reportedly Sees 'De-escalation' In US-China Tariff Standoff In 'Very Near Future'

U.S. Treasury Secretary Scott Bessent reportedly told a closed-door audience on Tuesday that he expects a "de-escalation" in the trade war between the U.S. and China in the "very near future."

His remarks, relayed by attendees and reported by Bloomberg News and CNBC, helped soothe markets rattled by the U.S.'s sweeping trade tariffs and the particular escalation with China.

Earlier in the day, President Donald Trump said he did not intend to fire Federal Reserve Chair Jerome Powell — despite earlier signaling otherwise—easing investor concerns about the stability of the U.S. economy.

The two developments boosted the benchmark S&P 500 (SPX), which closed up 2.5% on Tuesday.

Bessent emphasized that the U.S. does not aim to decouple from China and described the current status quo — 145% U.S. tariffs on Chinese goods and 125% Chinese tariffs on U.S. products — as unsustainable. 

He added that a comprehensive deal between the two countries could be reached within two to three years.

Meanwhile, Trump downplayed tensions with Beijing, saying the U.S. was "doing fine" with China and that negotiations wouldn't be "hardball." He said the final tariff rate on China would not be close to current levels.

Press Secretary Karoline Leavitt said 18 nations had submitted trade offers to the White House, and the president's trade team was meeting with representatives from 34 countries this week to discuss potential agreements.

Separately, Politico reported the White House was nearing high-level trade deals with Japan and India.

Bessent is scheduled to speak again on Wednesday morning at an event hosted by the Institute of International Finance.

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