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U.S.-China Trade War: Treasury Chief Signals De-escalation, But Talks Not Yet Started

Despite President Trump’s claim that the U.S. is “actively” talking with China, Treasury Secretary Scott Bessent clarified that formal negotiations have not yet begun. While both sides seem to keep communication lines open, uncertainty lingers over a timeline or strategy for resolving the ongoing trade conflict.

Treasury Secretary Scott Bessent said Wednesday that he is eyeing a two-to-three-year timeline for “the full rebalancing” of the relationship between the U.S. and China. | AP

Treasury Secretary Signals Hope for U.S.-China Trade De-escalation

U.S. Treasury Secretary Scott Bessent stated on Wednesday that the first step toward resolving the U.S.-China trade war would be a “de-escalation” by reducing high tariffs. However, he emphasized that no formal negotiations have started yet, even though President Trump claimed that talks are “actively” underway.


Mixed Signals from Trump and Bessent

While President Donald Trump asserted to reporters outside the White House that the U.S. is “actively” negotiating with China, Bessent contradicted that by saying discussions have not formally begun. This inconsistency has raised questions about the real state of U.S.-China trade relations.

A White House official clarified that both statements could be true, suggesting that informal communication is ongoing, even if structured negotiations haven’t started.


China Responds: Dialogue Must Be Respectful

Beijing pushed back, asserting that Trump is not serious about talks unless the U.S. reduces pressure tactics like tariffs. A Chinese foreign ministry spokesperson urged the U.S. to stop using “threats and blackmail” and to instead pursue respectful, equal dialogue.


What Comes Next? A Timeline for Rebalancing

Bessent suggested a two-to-three-year period may be needed for a “full rebalancing” of the U.S.-China economic relationship. However, he hoped for faster progress in reaching a deal. He pointed to the third quarter of 2025 as a reasonable time for clarity on tariff reductions.

He also indicated that future agreements with other countries might move faster, as the U.S. already has detailed demands on trade barriers.


Tariff Reductions Will Require Mutual Movement

According to another anonymous White House official, any reduction in tariffs would not be a unilateral move. Instead, it would depend on signs of progress and reciprocity from China. The official emphasized that any change in policy would be tied to real breakthroughs in dialogue.


🇺🇸 Symbolism and Strategy: Trump’s Public Message

In an unrelated moment, Trump revealed plans to personally fund two nearly 100-foot-tall American flags outside the White House — a symbolic gesture reflecting his ongoing campaign to project strength and nationalism.


Final Thought

The situation between the U.S. and China remains in flux. While there’s acknowledgment from both countries of the need to improve relations, mixed messages and deep distrust continue to cloud the possibility of a swift resolution.

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