Bessent said that it was not the US's goal to decouple from China and that the current status quo of 145% tariffs on Chinese goods by the US and 125% tariffs on US products by China was not sustainable. He expressed optimism that tensions could cool in the coming months, which would bring relief to markets, but cautioned that a larger deal could take longer.
The Treasury chief told attendees that a comprehensive deal between the two countries could happen in two to three years. He also reiterated his contention that China has stifled its consumer economy and favoured manufacturing at the US's expense, and said that any agreement would require a rebalancing of trade that allowed the US to increase manufacturing.
Negotiations with China over such a deal have not started yet, he said.
A spokesperson for the Treasury Department declined to comment.
See also: Trump, Xi hold call as trade, technology dispute roils ties
Trade offers
US stocks rose after his comments, with the S&P 500 index gaining as much as 2.9%. It was 1.7% higher as of 1.48pm in New York, while the dollar and Treasuries steadied.
The eagerness to demonstrate progress on trade deals was evident at the White House on Tuesday, even as administration officials stopped short of signalling that there had been genuine movement on agreements. Press Secretary Karoline Leavitt said that 18 different nations had brought trade offers to the White House and that the president's trade team was meeting with 34 countries this week about possible agreements.
See also: Vietnam sends trade department reply as US turns up China heat
She also said that Trump had told her Tuesday the US was "doing very well in respect to a potential trade deal with China," while sidestepping questions about whether there had been an actual conversation between the US president and Chinese leader Xi Jinping.
Separately, Politico reported that the White House was close to announcing high-level agreements with Japan and India - though those are expected to largely signal a willingness to negotiate on specific topics, with details to be worked out over months or even years. Leavitt declined to say whether those framework announcements would be enough to stave off the resumption of tariffs at the end of the 90-day pause.
Bessent was speaking on the sidelines of the International Monetary Fund and World Bank's spring meetings, as finance ministers and central bankers gather from around the world to assess the fallout of President Donald Trump's trade war.
