In recent developments, US Treasury Secretary Scott Bessent has indicated a possible path toward de-escalation of the ongoing trade tensions with China, describing the current tariff situation as unsustainable. While Bessent noted that there is no immediate plan for a unilateral reduction of tariffs, he emphasized that both nations recognize the need for changes. The stock market responded positively, with significant surges in major indices as hopes rise for a comprehensive trade deal. Bessent pointed out that the US has an opportunity for a substantial agreement with China and that discussions could potentially lead to a reduction in tariffs, although full resolution might take time. Furthermore, the White House has softened its rhetoric on tariffs, signaling a willingness to engage in dialogue. However, concrete steps toward lowering tariffs remain contingent on mutual agreements, with Bessent stressing the need for both countries to lower tariffs before formal talks can commence.