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- Secretary Treasury Scott Bessent said both the U.S. and China don’t want the trade war to escalate. However, he said it’s China’s responsibility to ensure that doesn’t happen.
As the U.S. and China stare each down amid their ongoing trade war, responsibility to end the dispute lies with Beijing, according to Treasury Secretary Scott Bessent.
“As I repeatedly said, I believe that it’s up to China to de-escalate because they sell five times more to us than we sell to them,” Bessent said Monday morning on CNBC. “So these 120%, 145% tariffs are unsustainable.”
Bessent pointed to the fact China had exempted certain U.S. goods from its 120% tariffs as evidence it did not want the trade war to continue. The exemptions the Chinese government granted are for products it deems of strategic importance, such as certain types of pharmaceuticals, aerospace equipment, and some microchips.
The exemptions “tell me they want a de-escalation,” Bessent said.
The U.S. welcomed that purported olive branch, he added. “What we haven’t done is escalate by embargoing those goods or putting a trade ban on those goods, which we could if we needed to gain more leverage,” he said. “We haven’t done it.”
Like China, the U.S. did not want the trade war to worsen, according to Bessent. “I can tell you, I do have an escalation ladder in my back pocket, and we’re very anxious not to have to use it,” he said.
Since trade relations between the U.S. and China deteriorated into a full-blown trade war earlier this month, the two sides have sent mixed signals about any overtures made to resolve the issue. In several public statements, President Donald Trump and Bessent have both said they have talked to members of the Chinese government in recent weeks. Trump told TIME Chinese President Xi Jinping had called him to discuss a trade deal; China’s foreign ministry disputed that account. Meanwhile, Bessent told CNBC he had spoken to his Chinese counterparts last week when they were in Washington D.C. for meetings at the International Monetary Fund.
However, when asked if talks were ongoing, Bessent said there were “lots of touchpoints” between the U.S. and China.
After Trump paused his tariff policy, which had originally affected dozens of U.S. trading partners, the White House says it’s been engaged in negotiations to secure trade deals with foreign countries. While no deals have been finalized yet, the Trump administration has reportedly been in talks with delegations from Japan and India among others. Bessent said the U.S. is currently in talks with 17 other countries. Trump is personally taking the lead on negotiations with “important trading partners,” Bessent added.
The markets are eagerly awaiting any news on trade deals on the belief they will mean increased stability for the U.S. economy moving forward. Since global markets were thrown into turmoil as a result of Trump’s tariff policy, investors have banked on the fact that trade agreements will calm the choppy waters. One of the first deals the U.S. could sign would be with India, according to Bessent. “Watch this space,” he said.
This story was originally featured on Fortune.com
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