U.S.-China Tariff War Hits Breaking Point—Bessent Warns ’Unsustainable,’ Predicts Retreat

Treasury Secretary Bessent slams the tariff deadlock with Beijing as a ’lose-lose spiral’—markets brace for the inevitable climbdown. Because nothing says ’diplomatic victory’ like quietly walking back sanctions while pretending it was the plan all along.

The stock market rally on the hopes of an end to the China-US trade war

After the statement by Scott Bessent, US stocks went up. Investors were hopeful that President Trump’s trade fights would calm down in a number of areas.

As of 12:28 p.m. in New York, the S&P 500 index had gone up as much as 2.9%. There were gains of over 1.5% in the Dow Jones Industrial Average. The tech-heavy Nasdaq saw gains of over 1.8%.

US stocks went up on Wall Street, where stocks fell because Trump went on social media to attack Fed Chair Jerome Powell. This has made things worse between POTUS and the central bank.

The split made it even harder for investors to keep up with Trump’s fast-changing trade policy. They didn’t know where the economy would go next. However, trade talks between the US and India on Tuesday showed more progress.

Negotiations between the US and other nations are ongoing

Talks have taken place between the Trump administration and leaders from Japan, South Korea, the EU, Canada, and Mexico, among others. 

However, Trump has not publicly said that he wants to lower his base 10% tariff. However, he has said that he wants other countries to lower their own import taxes and get rid of any non-tariff hurdles that the US administration says have stopped exports.

Meanwhile, the US Vice President JD Vance visited India and met with Prime Minister Narendra Modi. Both of them showed signs of progress in the talks, which the White House said would cover security, energy, technology, and more. 

Also, Karoline Leavitt, the press secretary for the White House, told reporters on Tuesday that Trump told her that “we’re doing very well” on a “potential trade deal with China.” Leavitt said the Trump administration has received 18 proposals from other countries for trade deals with the US, adding that “everyone involved wants to see a trade deal happen.”

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