US-China trade truce amid tariff chaos? Scott Bessent hints at 'big deal to be done' with China 'at some point'

US Treasury Secretary Scott Bessent said Monday that there’s no inherent reason for the U.S. and Chinese economies to decouple, suggesting a deal could still be reached even as the two nations exchange escalating tariff threats.

"There's a big deal to be done at some point," Bessent told Bloomberg TV when asked about the possibility of a U.S.-China economic split. "There doesn't have to be" decoupling, he added, "but there could be."

Bessent noted that negotiating a deal with China is uniquely challenging, explaining, "China is both our biggest economic competitor and our biggest military rival."


Tensions between the world’s two largest economies have intensified since President Donald Trump launched a global tariff campaign, with Chinese imports becoming a primary target. The tit-for-tat tariff battle has driven U.S. duties on Chinese goods up to 145%, while Beijing has responded with retaliatory tariffs of up to 125% on American imports.

The U.S. has sent mixed signals on its trade objectives and whether the tariffs, which have global economic implications, might be lifted. Recently, the White House appeared to ease pressure by announcing temporary exemptions on certain electronics—like smartphones, laptops, and semiconductors—for which China is a key supplier.

However, Trump and top aides clarified Sunday that these exemptions were being misinterpreted and would be short-lived. "NOBODY is getting 'off the hook'... especially not China which, by far, treats us the worst!" Trump declared on his Truth Social platform.

Bessent emphasized the seriousness of the tariff strategy. "These are big numbers. I think no one who thinks they're sustainable wants them to remain here," he warned.

Meanwhile, Chinese President Xi Jinping began a Southeast Asia tour Monday with a stop in Vietnam. There, he cautioned that protectionist policies "will lead nowhere" and asserted that a trade war would "produce no winner."

"We must strengthen strategic resolve, jointly oppose unilateral bullying, and uphold the stability of the global free trade system as well as industrial and supply chains," Xi told Vietnamese leader To Lam.

While the White House maintains that Trump is optimistic about reaching a trade agreement with China, officials have suggested it’s up to Beijing to make the next move.

The ongoing trade war is stoking concerns of a potential global economic slowdown, with the dollar weakening and investors pulling out of U.S. government bonds—long seen as a safe-haven asset.

With inputs from AFP