U.S. and China are talking, but China needs a de-escalation, Bessent says
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Treasury Secretary Scott Bessent addresses the American Bankers Association in April 2025. Photo: Kayla Bartkowski/Getty Images
The U.S. and China are talking on key economic matters, despite what the Chinese government may say publicly, Treasury Secretary Scott Bessent said Sunday.
Why it matters: The trade war between the world's two largest economies threatens the entire global order, but there's significant disagreement about whether there's any actually progress toward a resolution.
The latest: President Trump said Sunday evening there had been "a little bit" of movement in regards to the China tariffs, per a White House press pool report.
- "They want to make a deal, obviously, right now they're not doing business with us," he said.
- "People talk about going cold turkey with China, just forget about it. We were losing hundreds of billions of dollars a year with China, and now they're not doing any business with us. ... not because of them, because of me, because at 145% [tariffs] you can't do business."
What they're saying: Bessent, in an interview on ABC's "This Week," noted the world's key economic figures were all in Washington this past week for the IMF and World Bank spring meetings.
- "I had interaction with my Chinese counterpart, but it was more of the traditional things like financial stability, global economic early warnings. I don't know if President Trump has spoken with President Xi," Bessent said.
- Asked about China's strident denials of any talks, Bessent said "I think they're playing to a different audience."
Catch up quick: Over the past week, Trump repeatedly insisted his administration was talking with China about trade, even as the Chinese side denied it.
- Bessent has said the trade war was "unsustainable" and that the world's two largest economies effectively have a trade embargo in place.
Zoom out: The impact of that embargo is already being felt at retail stores, in commodity exports, and for new parents, among others.
- Apollo chief economist Torsten Slok, in a new research report Saturday, projected empty store shelves in about three weeks and a recession by summer absent immediate relief.
- Former National Economic Council director Gary Cohn, a key adviser in Trump's first term, warned of the same Sunday during an interview on CBS News' "Face the Nation."
- "I would say the last couple weeks of May you'll start, you'll start seeing this effect here. We're a few weeks away from starting to see the early effects of what will happen in the transportation of goods," Cohn said.
Between the lines: Americans are rapidly losing confidence in Trump's ability to manage the economy.
- Two polls out Sunday — from CNN and the Washington Post — echo two polls out earlier this week from Pew and Reuters/Ipsos, finding a majority of adults disapprove of Trump's economic performance.
- They're his weakest numbers on economic issues in 10 years in and around public office.
What to watch: Bessent offered a roadmap of sorts for a de-escalation process, one that doesn't necessarily include a final deal.
- "I think that there is a path here. The first path will be, again, a de-escalation, which I think the Chinese are going to have to have. Then I think there can be an agreement in principle," he said.
- "These 17 or 18 important trade deals that we're negotiating, the actual papering of a trade deal can take months. But an agreement in principle, and the good behavior and staying within the parameter of the deal by our trading partners, can keep the tariffs from ratcheting back to the maximum level, sure."
Editor's note: This story has been updated with comments by President Trump and former Trump adviser Gary Cohn.
