NEW YORK (Reuters) -U.S. Treasury Secretary Scott Bessent on Tuesday said that the tariff standoff with China is unsustainable and that he expects the situation to de-escalate, a source familiar said.

Bloomberg first reported this.

He also added that negotiations haven’t started but that a deal is possible, the source added.

Bessent said this at a closed door event hosted by JPMorgan Chase (NYSE: JPM ) in Washington.