Bessent gave the remarks in a private speech in Washington, D.C., for JPMorgan Chase, adding that the conflict is not “sustainable.”
“I do say China is going to be a slog in terms of the negotiations,” Bessent said, according to a transcript of his remarks obtained by the Associated Press. “Neither side thinks the status quo is sustainable.”
However, he mentioned two to three years as the likely timeframe where a comprehensive deal between the countries would be struck, according to sources speaking with Bloomberg who attended the event. The current situation is essentially a trade embargo, Bessent suggested.
China and the U.S. have enforced massive tariffs on goods entering their borders from the opposing country. China put a 125% tariff on U.S. products, while the U.S. has a 145% tariff on Chinese goods.
President Donald Trump and his administration are negotiating with several countries/unions on deals regarding the tariffs, including Japan, South Korea, the European Union, and others.
Trump said the U.S. was “doing fine” with China when asked about Bessent’s comments, adding that he did not anticipate a “hardball” negotiation. He added that he’d be “very good to China” and that he doubts the final tariff will be close to 145%.
“We’re going to be very nice,” Trump said. “They’re going to be very nice, and we’ll see what happens. But ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States.”
White House press secretary Karoline Leavitt said Trump also told her that the U.S. was “doing very well in respect to a potential trade deal with China.” She added that 18 different nations had brought trade offers to the White House and the president’s trade team was meeting with 34 countries this week about possible agreements.
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China said recently that it will seek countermeasures against countries that make deals with the U.S. that work to their detriment.
The market, which has wavered on tariff news, surged after Bessent’s comments. The S&P 500 index closed on Tuesday up about 2.5%.
