Treasury Secretary Scott Bessent told an investor summit on Tuesday that he expects the U.S. and China will de-escalate the impasse over tariffs because it's unsustainable for both countries, FOX Business has learned.

Bessent said that while negotiations haven't started, a deal is possible, a source who attended the investor summit told FOX Business. Bloomberg first reported the news.

The treasury secretary added that those trade talks will take time, but the status quo with elevated tariffs isn't viewed as sustainable by either side.

This is a developing story. Please check back for updates.