US Treasury Secretary Mnuchin: Trade tensions between China and the US may ease, negotiations could soon begin.

On Tuesday, the U.S. Treasury Secretary, Scott Benson, expressed at an event organized by JPMorgan in Washington that he expects the trade hostility between the U.S. and China to soon start easing. Eyewitnesses at the scene leaked Benson's speech to the media. Since President Trump announced tariffs of up to 145% on Chinese goods, the stock market has been steadily declining, and China has swiftly retaliated with tariffs of up to 125% on U.S. products. The S&P 500 index has dropped by 8% since early April, although there was a slight rebound in the market this Tuesday. According to the insider, Benson stated in his speech that these high tariffs actually amount to a "ban", almost close to a trade break between the U.S. and China. However, he emphasized that Washington does not wish for an economic "decoupling" between the US and China. Despite the intense trade tensions currently, it does not mean that the two countries will completely split. Benson pointed out that the unsustainable tariff situation at present will eventually prompt both countries to reassess and adjust their trade relations, and initiate a series of potentially difficult negotiations. It is worth noting that the U.S. not only faces negotiation challenges with China but also needs to renegotiate agreements with up to 90 trading partners. Investors are concerned that negotiations with major economies like China, the EU, and Japan could drag on, raising worries about global economic growth prospects and alerting to possible recession risks. This week, finance ministers from various countries including the Treasury Secretary gathered in Washington to attend the spring meetings of the International Monetary Fund and World Bank. Benson's speech took place during these sideline meetings. For investors, this week is seen as a crucial moment for U.S. policymakers, especially Benson, to demonstrate progress in diplomacy and economics. However, despite Benson's optimistic outlook on easing U.S.-China relations in his speech, insiders reveal that formal communication between the U.S. and China has not yet begun. In other words, while there may be a possibility of a turnaround, true negotiations have not started yet, leaving the situation uncertain.