Trump’s declaration of “Liberation Day” on April 2 a universal 10% tariff on all imports, with specific levies on countries like China reaching up to 145%. China retaliated with tariffs of up to 125% on U.S. goods, triggering a tit-for-tat escalation that disrupted global markets and strained diplomatic relations.​

Treasury Secretary Scott Bessent told private investors during a meeting on Tuesday that the spiraling trade war between the United States and China was unsustainable and that he expects a "de-escalation" soon, according to a report from the Associated Press (AP). Newsweek has reached out to the White House for comment on Tuesday.

President Trump said 145% tariffs on Chinese imports will "come down substantially" as his administration expressed optimism about a trade deal.