Treasury Secretary Scott Bessent has once again tempered expectations on the future of US-China trade relations, signaling no imminent tariff relief from the Trump administration despite growing economic fallout and earlier hints of softening.
“There will be no unilateral reduction in tariffs against China,” Bessent declared during remarks to reporters in Washington, aligning with White House spokesperson Karoline Leavitt’s confirmation on Fox News.
Pressed on whether the 145% US tariffs on Chinese goods and China’s 125% reciprocal duties could come down, Bessent admitted, “Neither side believes these are sustainable levels,” likening the current impasse to an “embargo.” Still, he was firm: Trump won’t blink first.
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President Donald Trump recently signaled potential tariff recalibrations, stating, “We’ll set [the] tariff if we don’t have a deal,” while also dismissing the consequences of failing to strike one: “If we don’t make a deal with China, it’s OK.”
Bessent walked back earlier suggestions that a full China trade deal could take two to three years, now clarifying that timeline refers to the broader economic rebalancing, not the negotiations themselves. He optimistically suggested clarity on tariffs could emerge as soon as the third quarter.
Yet with the IMF slashing US growth forecasts to 1.8%—down nearly a full percentage point—largely due to tariff uncertainty and retaliation, doubts are mounting. Bessent dismissed concerns, saying, “I’m not concerned about the IMF projections,” and maintained the administration’s growth target of 3% based on energy production and deregulation.
The Treasury Secretary also highlighted progress in other trade fronts, saying a deal with India was “very close.” Talks with Japan and the EU remain bogged down by disputes over digital taxes, subsidies, and currency issues.
“I don’t think the economy will rise and fall off of the Bahamas and Costa Rica negotiations,” he quipped.
Bessent’s remarks reflect a now-familiar pattern: rhetorical hardlines punctuated by strategic retreats. The administration continues to talk tough on trade while failing to deliver the certainty markets—and allies—crave.
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