U.S. Treasury Secretary Scott Bessent said in a Tuesday speech that the ongoing tariffs showdown against China is unsustainable and expects a “de-escalation” in the trade war between the world’s two largest economies.

Standing outside his friend’s cupcake shop, he says Donald Trump’s levies are a sign that America feels threatened by China’s rise. America’s power is declining, he says. “To be honest, what you feel in today’s world is that hegemony is very hard to achieve.

China warned other countries against striking new trade deals with the U.S. that might come at the expense of Beijing’s economic interests, as tensions resulting from President Trump’s tariff policies against the country rise. The Chinese Ministry of Commerce said Monday it would retaliate against any party that reaches a deal that comes at the…