U.S. Treasury Secretary Scott Bessent said on Monday that he expects potential progress in U.S.-China trade negotiations in the coming weeks, despite ongoing tensions over President Donald Trump’s steep tariffs. Speaking to CNBC, Bessent acknowledged that the 145% tariffs imposed on Chinese imports were effectively “an embargo,” and not economically viable in the long term.
However, Bessent did not confirm whether any formal trade talks were currently underway. “We’ll see over the coming weeks, we’ll see what President Trump wants to accept,” he said. He emphasized that the U.S. holds leverage in the dispute, noting that the U.S. is a deficit country while China, with its trade surplus, stands to lose more from a prolonged conflict.
The remarks come amid uncertainty about the status of U.S.-China trade discussions, following a sharp escalation in April. Trump’s administration imposed 145% tariffs on Chinese goods, prompting Beijing to retaliate with 125% tariffs. While Trump claimed that negotiations were ongoing, Chinese officials denied that any talks had taken place.
China recently suggested it was open to discussions but insisted that the U.S. must first ease its tariff measures. Beijing stated it would not enter talks under the current trade pressure, despite reports that U.S. officials had made overtures toward restarting dialogue.
President Trump has indicated he may consider reducing tariffs, but only if China agrees to terms favorable to the U.S. On Monday, he claimed China “wants to make a deal very badly,” though he did not provide details on any direct communication with Beijing.
The standoff continues to inject uncertainty into global markets, as investors await clearer signals on whether meaningful progress in trade negotiations will be made.