Investing.com -- US Treasury Secretary Scott Bessent has stated that the ongoing tariff standoff between the US and China is unsustainable and anticipates a de-escalation in the situation. Bessent’s comments were made during a private investor summit hosted by JPMorgan Chase & Co. (NYSE: JPM ) in Washington, according to a report from Bloomberg, citing individuals present at the event.

While formal negotiations have not yet begun, Bessent expressed optimism that a deal could be reached between the two economic powerhouses.

Bessent also highlighted that the world’s two largest economies are essentially in a state of trade embargo.