Bessent advised folks he sees de-escalation with China at JPMorgan non-public occasion

US Treasury Secretary Scott Bessent made significant comments about the ongoing tariff tensions with China at a closed-door investor summit on Tuesday in Washington.

According to Bloomberg, Bessent told attendees that the standoff with China — which he said was essentially an embargo — is unsustainable and that he expects it to de-escalate.

He said that while formal negotiations haven’t commenced, a deal remains possible.

Risk assets have rallied on this, with the S&P 500 rallying 35 points to a session high after a conspicuous bid all morning.

Once again we see high-ranking officials making market-moving comments behind closed doors. Bessent’s remarks about China trade de-escalation being shared exclusively with select JPMorgan clients represents exactly the kind of two-tier information system that undermines market fairness.