US Treasury Secretary outlines path to trade agreement with China amid tariff disputes

US Treasury Secretary Scott Bessent expressed optimism about the possibility of reaching an agreement with China over the ongoing tariff dispute, following his recent interactions with Chinese counterparts.

Bessent revealed that his discussions with Chinese officials last week in Washington focused mainly on financial stability and global economic early warnings, with little direct engagement on tariffs, Caliber.Az reports via foreign media.

“I had interaction with my Chinese counterparts, but it was more on the traditional things like financial stability, global economic early warnings,” Bessent explained, 

He added, “I don’t know if President Trump has spoken with President Xi,” further clarifying that the discussions were not centered on trade negotiations.

On April 25, President Donald Trump had claimed in an interview that tariff negotiations were underway with China. However, China's foreign ministry later denied these assertions, urging the US to “stop creating confusion” over the state of negotiations. China’s foreign minister, Wang Yi, also criticized the US, accusing it of engaging in trade wars out of “extreme egoism.”

Bessent attempted to navigate the conflicting messages regarding the tariff negotiations, stating, “The Chinese will see this high tariff level is unsustainable for their business.” He further suggested that China's denial of ongoing talks was aimed at appealing to a domestic audience. “I think they’re playing to a different audience,” Bessent said. “We have a process in place, and, again, I just believe these Chinese tariffs are unsustainable.”

Looking ahead, Bessent emphasized the importance of de-escalation as a first step in the negotiation process, noting, “The first path will be, again, a de-escalation, which I think the Chinese are going to have to have.” He also suggested that an agreement could eventually be reached on key trade deals, with discussions currently covering 17 or 18 major topics.

Despite the ongoing uncertainty, Bessent cautioned that trade deals can take months to finalize and stressed the ongoing progress in negotiations with other US trading partners, especially in Asia. Referring to President Trump's negotiating style, he added, “In game theory it’s called strategic uncertainty... nobody’s better at creating this leverage than President Trump.”

Bessent’s remarks come as US retailers have raised concerns that tariffs could lead to empty store shelves and price hikes within weeks, adding pressure on the administration to find a resolution.

By Vafa Guliyeva