Scott Bessent denounces China’s new tariff as a losing strategy

In the context of an escalating trade war, United States Treasury Secretary Scott Bessent stated this week that the U.S. maintains a significant economic advantage over China. He articulated his views during an interview on CNBC's 'Squawk Box,' where he remarked on the recent decision by China to impose additional tariffs on U.S. goods. This action was characterized by Bessent as a grave error on China's part, emphasizing the imbalance in trade between the two nations. He pointed out the fact that the U.S. exports only a fraction of what China exports to America, rendering China's tariff increases ineffective. During his remarks, Bessent elaborated on the ongoing negotiations regarding tariffs. He noted that many countries, including Japan, had shown eagerness to negotiate new agreements to promote fair trade practices. The expectation was that several major nations with substantial trade deficits would come forward with proposals that could lead to mutually beneficial agreements. Bessent stressed the potential for these negotiations to bring jobs back to the U.S. while also generating revenue through tariffs. He indicated that the ultimate goal would be to reshape the U.S. manufacturing landscape and improve the trade balance significantly. Moreover, Bessent highlighted that China had escalated its tariff response from 34% to 84% in retaliation for increased tariffs imposed by President Donald Trump, which had gone up to 104%. This ongoing tit-for-tat in tariffs showcased the high stakes involved in the trade war and the determination of both countries to stand firm in their negotiations. Bessent also pointed to China's refusal to negotiate as problematic for their long-term economic prospects, claiming that they are the surplus country in trade and that their recent actions would ultimately hurt them more than the U.S. In closing, Bessent mentioned the broader implications of international trade and the focus on non-tariff barriers, such as currency manipulation and value-added taxes. This indicates a more comprehensive approach to trade negotiations that seeks to address various unfair practices and ensure equitable trading conditions. Bessent's comments not only underscored current tensions but also pointed to a strategic vision for the U.S. trade policy moving forward.