U.S. Treasury Secretary Scott Bessent told a private investor summit on Tuesday that the ongoing tariff standoff with China is not sustainable and that he anticipates a de-escalation in the near future.
According to attendees at the closed-door session—part of an event hosted by JPMorgan Chase & Co. in Washington—Bessent noted that while formal negotiations have not yet begun, a deal remains possible.
The Treasury Department did not immediately comment on his remarks.
Following Bessent’s comments, U.S. stocks climbed, with the S&P 500 rising as much as 2.9% by 12:28 p.m. in New York. Meanwhile, the dollar and Treasury markets held steady.
Bessent made the remarks on the sidelines of the International Monetary Fund and World Bank’s spring meetings, where global finance ministers and central bank officials are convening to assess the broader implications of President Donald Trump’s trade policies.
He also pointed out that the U.S. and China effectively have a trade embargo in place, with both nations imposing tariffs exceeding 125% on each other’s goods.