By Andrew Moran
Contributing Writer
The White House is optimistic about a potential trade deal with China.
White House press secretary Karoline Leavitt told reporters at a Tuesday press briefing that President Donald Trump believes his administration is “doing very well” and “moving in the right direction” toward establishing a trade agreement with the Chinese communist regime.
Leavitt’s comments come soon after Treasury Secretary Scott Bessent suggested to a group of investors during a closed-door event in Washington that U.S.-China trade tensions could ease soon.
A person who had been in the room said that Bessent indicated the situation is unsustainable and that both sides will de-escalate in the near future.
Bessent likened the current situation to an embargo as the world’s two largest trading powers have imposed hefty tariffs on each other.
Earlier this month, the administration imposed up to 245% tariffs on Chinese goods entering the country. Beijing retaliated with 125% levies on U.S. products.
In an April 14 interview with Bloomberg Television, Bessent expressed hope that the two countries could reach a deal. He noted that China requires “a special kind of formula” since it is America’s largest economic rival and military competitor.
“These are not a joke. I mean, these are big numbers,” Bessent said in the interview. “I think no one thinks they’re sustainable, wants them to remain here, but it’s far from a joke.”
China’s Finance Ministry in a statement on April 11 called the tariffs “excessively high” and “an act of unilateral bullying and coercion.”
The White House stated last week that the “ball is in China’s court” and that the Chinese regime needs to make a deal with the United States.
“We don’t have to make a deal with them,” Leavitt told reporters during a press briefing, quoting the president.
“There’s no difference between China and any other country except they are much larger, and China wants what we have, what every country wants: the American consumer. Or, to put it another way, they need our money.”
Trump has also said on social media that China would eventually contact the administration to negotiate an agreement.
“China wants to make a deal. They just don’t know how quite to go about it,” Trump said during an April 9 White House event. “You know, it’s one of those things they don’t know quite — they’re proud people.”
Stocks rallied shortly after Bessent’s remarks, with all three leading benchmark averages rebounding.
The blue-chip Dow Jones Industrial Average surged about 1,000 points. The broader S&P 500 and the tech-heavy Nasdaq Composite Index advanced more than 2%.
Stocks connected to China also rose on the news. Artificial intelligence chipmaker Nvidia, for example, popped as much as 6%. AMD, another chipmaking company, picked up more than 1%.
Greg McBride, chief financial analyst at Bankrate, says there is still plenty of uncertainty in the financial markets.
“The market is still fraught with uncertainty over tariffs and trade, and the potential impact on inflation and the broader economy,“ McBride said in a prepared statement. ”In addition, it is quarterly earnings season, and that is a catalyst for volatility even in normal times.”
