Bessent Says No Confirmation on Trump-Xi Talks as U.S.-China Trade Tensions Escalate

U.S. Treasury Secretary Scott Bessent said on Sunday he was unaware if President Donald Trump had spoken with Chinese President Xi Jinping, nor could he confirm whether formal trade negotiations were underway. Speaking with ABC News’ This Week, Bessent stated he had interacted with his Chinese counterpart during last week’s International Monetary Fund meetings in Washington, but discussions were limited to traditional topics like financial stability and global economic risks.

"I don't know if President Trump has spoken with President Xi," Bessent said, adding that Chinese officials appeared to be "playing to a different audience" when they denied the existence of ongoing trade talks. His comments follow Trump's recent claim that negotiations with Beijing were in progress—an assertion China promptly rejected.

Tensions between the two largest economies have sharply worsened in April, following Trump’s imposition of 145% tariffs on Chinese goods and China’s retaliatory 125% tariffs on U.S. products. Despite the escalation, Trump recently hinted at a willingness to ease tariffs if China agreed to negotiate, citing concerns over the economic fallout from a prolonged trade war.

In a separate interview with NBC, Bessent described China's tariffs as "unsustainable" and expressed optimism that trade talks would eventually resume, though he offered no clear timeline. Bloomberg previously quoted Bessent saying a potential U.S.-China trade deal could be a "slog" and might take years to finalize.

As uncertainty clouds future negotiations, investors and businesses remain cautious about the prolonged economic impact of the U.S.-China standoff.