Camilla Jessen
As the US hints at lowering harsh tariffs on Chinese goods, China turns to Europe for support.
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US Treasury Secretary Scott Bessent has predicted a de-escalation in the ongoing trade conflict between the United States and China.
Speaking at a private event hosted by JP Morgan Chase in Washington, Bessent reportedly described the current trade standoff as “unsustainable” for both economies, according to a source present at the meeting cited by AFP and Digi24 via Agerpres.
The conflict has seen the US impose tariffs of up to 145% on Chinese goods, with Beijing responding in kind with 125% tariffs.
“Nobody believes the current status quo is sustainable,” Bessent was quoted as saying, likening the mutual surcharges to a de facto trade embargo that hampers the flow of goods on both sides.
In this context, Bessent anticipated a “soon” easing of tensions—a prospect that suggests behind-the-scenes negotiations may already be shaping a new trajectory for US-China trade.
“They Will Decrease Substantially”
President Donald Trump has also signaled a reversal in his administration’s tariff strategy.
Speaking to the press during a White House event, Trump admitted the tariffs he imposed were “very high” and hinted at a substantial reduction.
“They will not stay anywhere near that number,” Trump said, though he clarified that the rates “will not go back to zero.”
White House spokesperson Karoline Leavitt has confirmed that trade negotiations with China are “progressing very well,” although no specific framework or timeline has yet been disclosed.
China Turns to Europe to Reinforce Multilateral Trade
While Washington voices optimism, Beijing appears to be diversifying its diplomatic strategy.
Chinese Foreign Minister Wang Yi has intensified outreach to European allies, urging them to stand with China in defending global trade norms against what he described as American “unilateral intimidation.”
In calls with his British and Austrian counterparts, Wang emphasized the importance of reinforcing the multilateral trading system.
“China and the United Kingdom have the responsibility to safeguard the multilateral trade order,” he told UK Foreign Secretary David Lammy, per a release from the Chinese Foreign Ministry.
Similarly, in discussions with Austrian Foreign Minister Beate Meinl-Reisinger, Wang stressed the EU’s role in promoting an “open world economy.”
Beijing has not confirmed talks with the US.