WASHINGTON, April 23, 2025 (BSS/AFP) - The trade standoff between Washington and Beijing is not sustainable, US Treasury Scott Bessent said Tuesday, predicting the tit-for-tat tariff war would de-escalate soon.

Speaking at a closed-door event hosted by JPMorgan Chase, Bessent said the enormous tariffs the world's two biggest economies placed on each other's imports amounted to a reciprocal trade embargo.

Bessent was referring to new duties Washington and Beijing have imposed this year, after US President Donald Trump returned to the presidency.

Since Trump's White House return in January, the United States has slapped additional tariffs of 145 percent on many products from China.

These were introduced partly over China's alleged role in the fentanyl supply chain and also over practices Washington deemed as unfair.

Beijing has responded with sweeping counter tariffs of 125 percent on US goods, in retaliation against Washington's latest salvo.

Bessent told the event Tuesday that he expects a de-escalation in the near future, according to a person who was in the room.

This development should bring markets some relief, he added at the event, which was not open to media.

Wall Street's major indexes jumped after a news report on Bessent's comments at the event, which took place on the sidelines of the International Monetary Fund and World Bank's Spring Meetings.

Bessent said there is a big deal to be done at the end of the day with Beijing, but noted the need for fair trade and said China needs to rebalance its economy.

The Treasury chief stressed as well that the goal is not to decouple with China.

As global finance ministers and central bankers converge in Washington this week, all eyes are on progress of trade talks on the sidelines of the meetings as countries grapple with Trump's new and wide-ranging tariffs.