U.S. Treasury Secretary Scott Bessent said on Wednesday that high tariffs between the United States and China are not sustainable, as President Donald Trump's administration signaled openness to de-escalating a trade war between the world's two largest economies that has raised fears of recession.

Treasury Secretary Scott Bessent told an investor summit Tuesday that he expects the tariff war between the U.S. and China will de-escalate because the status quo is unsustainable.

The trade war with China is "unsustainable" in its current form, Treasury Secretary Scott Bessent said Wednesday, but the U.S. will not move unilaterally to reduce tariffs. Why it matters: As recession worries grow,

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

But in a private speech in Washington for JPMorgan Chase, Scott Bessent also cautioned that talks between the U.S. and China had yet to formally start.