By DAVID LAWDER AND TREVOR HUNNICUTT
WASHINGTON—US Treasury Secretary Scott Bessent said on Wednesday said that high tariffs between the United States and China are not sustainable, as President Donald Trump’s administration signaled openness to de-escalating a trade war between the world’s two largest economies that has raised fears of recession.
US stocks rallied on hopes that the two countries might lower the steep trade barriers they have erected over the past month, though there was no sign that negotiations might start anytime soon.
Bessent said the tariffs – 145 percent on Chinese products and 125 percent on US products – would have to come down before trade talks can proceed, but said Trump would not make that move unilaterally.
“Neither side believes that these are sustainable levels. As I said yesterday, this is the equivalent of an embargo and a break between the two countries in trade does not suit anyone’s interest,” Bessent told reporters.
The White House is open to discussing a significant rate cut on Chinese imports in order to advance negotiations with Beijing but will not do so alone, according to a person familiar with the conversations. That person would not say how low the White House might be willing to go, but the Wall Street Journal reported the figure could be as low as 50 percent.
A White House spokesperson dismissed any reports as “pure speculation,” and said news on tariffs would come from Trump himself.
“We are going to have a fair deal with China,” Trump told reporters, but did not outline any specifics.
The tariff levels outlined in the Journal report would likely still be high enough to deter a significant chunk of trade between the world’s two largest economies. German shipper Hapag-Lloyd said Wednesday that 30 percent of its US-bound shipments from China have been canceled.
Separate talks between the two countries over tackling the fentanyl epidemic have not yielded results so far, sources say.
The apparent US softening on China tariffs was a welcome sign for markets battered by Trump’s erratic trade policies. The benchmark S&P 500 finished the day 1.67 percent higher at 5,375.86, but is still more than 12 percent below its February record close.
