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The trade tension between the United States and China might be heading for a turn. On Tuesday, US Treasury Secretary Scott Bessent said the current tariff war isn’t something that can go on forever. He called it ‘unsustainable’ and suggested that there could be a de-escalation between the two countries in the near future.
Speaking at a private event hosted by JPMorgan Chase in Washington, Bessent pointed out that formal talks between the US and China haven’t actually started yet. So while the pressure is building, official negotiations are still on hold.
Now here’s what sparked the latest wave in this long-running trade fight.Just last week, the Trump administration introduced a steep new set of tariffs, going as high as 245 percent on Chinese goods coming into the US. That’s a big move and a sharp escalation of the ongoing trade battle.
According to a fact sheet from the White House, the breakdown of this new tariff looks like this:
- A 125 percent reciprocal tariff to match China’s previous actions
- A 20 percent tariff linked to the fentanyl crisis
- And the rest falls under the Section 301 tariffs, ranging from 7.5 percent to 100 percent, depending on the specific goods
The White House statement said, “China now faces up to a 245 percent tariff on imports to the United States as a result of its retaliatory actions.”
Meanwhile, former US President Donald Trump has also chimed in, saying that America is “doing very well” when it comes to a possible trade deal with China. But so far, there’s no sign of an official agreement or formal sit-down between the two sides.
It’s a tense situation, and with numbers like these, the global market is watching closely. If talks do start soon, we might see a shift, but for now, things remain uncertain.
