Scott Bessent called China’s economic model “unsustainable” as White House officials indicated trade negotiations were continuing.

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

Treasury Secretary Scott Bessent said on Wednesday that he expects a de-escalation in the ongoing tensions between the U.S. and China, following President Donald Trump's imposition of retaliatory tariffs of 245% on imports of Chinese goods into the country.

Chief executives of Walmart, Target and Home Depot reportedly warned Trump that supply chain disruptions were already underway and would lead to empty shelves at U.S. stores in a matter of weeks.

Stocks opened higher in early trading Wednesday. The surge comes after Donald Trump backed off threats to fire the chairman of the Federal Reserve and showed a willingness to lower tariffs on China. Stocks continued to rally early Wednesday after Donald Trump backed off of threats to remove the chairman of the Federal Reserve and signals that tariffs on Chinese imports could be lowered in the weeks to come.

Stocks ripped higher Wednesday as President Donald Trump appeared to back off some of his stances most disliked by Wall Street, including more than 100% tariffs on Chinese imports and the firing of Federal Reserve Chairman Jerome Powell, as the market swings wildly on Trump’s latest policy leanings.

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

Wall Street's main indexes rose on Wednesday as investors welcomed signs of a thaw in the U.S.-China trade war and after President Donald Trump scaled back his threats to fire Federal Reserve Chair Jerome Powell.