High Stakes: The Tug-of-War on U.S.-China Tariffs

U.S. Treasury Secretary Scott Bessent indicated high tariffs with China are unsustainable, hinting at openness for negotiation. With trade tensions creating market unrest, there are speculations about tariff reductions. However, President Trump remains firm on maintaining leverage, while global markets react to the ongoing economic uncertainties.

Scott Bessent, the U.S. Treasury Secretary, has stated that the steep tariffs between the U.S. and China are unsustainable, encouraging discussion about potentially reducing trade barriers. The statement follows hopes for de-escalation in the trade war between the two economic giants, which has stirred fears of recession.

Bessent emphasized that neither the U.S. nor China see the current tariff levels as sustainable, likening them to an embargo. Despite no immediate signs of negotiations, the markets were buoyed by the prospect of reduced tensions, with U.S. stocks rallying and the S&P 500 increasing by 1.85% during midday trading.

The Wall Street Journal reported that the White House is considering significant tariff reductions on Chinese imports, although official confirmation is yet to be provided. Meanwhile, discussion continues on various fronts, including talks on the fentanyl epidemic, while industries and international markets remain affected by the ongoing trade policy uncertainties.

(With inputs from agencies.)