Overview

• US Treasury Secretary Scott Bessent described the US-China tariff war as unsustainable, labeling the trade situation an 'embargo.'
• Bessent expressed optimism about a potential de-escalation in trade tensions but acknowledged that formal negotiations have not yet begun.
• He characterized future trade talks as likely to be challenging, with no guarantees of success but the possibility of a deal.
• The Trump administration’s objective is to rebalance the US and Chinese economies rather than pursue economic decoupling.
• Bessent's remarks at a closed-door investor summit coincided with a surge in US stock markets, reflecting investor optimism.