The Trump administration’s trade war rhetoric towards the People’s Republic of China appears to be softening further with Treasury Secretary Scott Bessent telling a group of economists that Beijing has a chance to strike a significant trade accord with Washington as both countries seek to reorient their economies.

U.S. markets are poised to open with big gains, a clear signs of relief after President Donald Trump said he would not attempt to fire the head of the Federal Reserve and Treasury Secretary Scott Bessent said he expects a “de-escalation” from unsustainable tariffs against China in the trade war between the world’s two largest economies.

Treasury Secretary Scott Bessent on Wednesday said he believes the Trump administration could strike a deal with China.