U.S. Treasury Secretary Scott Bessent on Tuesday said he warned Chinese officials that continued purchases of sanctioned Russian oil would lead to big tariffs due to legislation in Congress, but was told that Beijing would protect its energy sovereignty.

President Trump has long complained about the trade deficit with China, which last year saw the US buy $295bn (£221bn) more goods from China than the other way round. US Trade Representative Jamieson Greer said the US was already on track to reduce that gap by $50bn this year.

Negotiations between the U.S. and China on a possible trade deal in Sweden this week were “very constructive,” Treasury Secretary Scott Bessent told reporters on Tuesday.