The Treasury secretary said that the President Trump and Xi Jinping of China have a good relationship but that he was not aware of a call, which Mr. Trump had alluded to last week.

Bessent gave the remarks in a private speech in Washington, D.C., for JPMorgan Chase, adding that the conflict is not "sustainable."

U.S. Treasury Secretary Scott Bessent told a closed-door investor summit on Tuesday that he expects the tariff showdown with China will de-escalate as the situation is unsustainable, according to a media report.