Treasury Secretary Scott Bessent warned Wednesday that China’s decision to retaliate against President Donald Trump’s tariffs will ultimately backfire.
China announced it is raising tariffs on American goods from 34% to 84% in response to Trump hiking tariffs on Chinese goods from 54% to 104%, CNBC reported. Bessent argued on “Mornings with Maria” that because China exports far more to the U.S. than it imports, it has more to lose in a trade war. (RELATED: ‘I Never Met A Tax Cut I Didn’t Like’: Kudlow Examines Possible Benefits And Pitfalls Of Trump Tariffs)
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“I think it’s unfortunate that the Chinese actually don’t want to come and negotiate because they are the worst offenders in the international trading system. They have the most imbalanced economy in the history of the modern world,” Bessent told host Maria Bartiromo. “And, you know, I can tell you that this escalation is a loser for them, that they have some very smart — the economists … technocrats within their bureaucracy. And they would be telling the leadership that ‘we do not have the edge here.’ They are the surplus country, their exports to the U.S. are five times our exports to China. So they can raise their tariffs — but so what?”
“No one wins in a war, but it’s proportionality — and the proportionality for the Chinese is going to be much worse,” he added. “And the other thing too, Maria, what would be a very good step with the Chinese would be acknowledging that the precursor chemicals for fentanyl come from China. They make their way into North America and then are sold into the U.S. We have more than 100,000 American citizens dying every year.”
China exported $438.9 billion worth of goods to the United States in 2024 while the U.S. exported $143.5 billion to China, according to the U.S. Trade Representative. Consumer spending in America makes up nearly 70% of its Gross Domestic Product (GDP), according to J.P. Morgan Asset Management.
Trump originally planned to impose 20% tariffs on China in February over its role in the fentanyl epidemic. He raised them by 34% on April 2 as part of his broad tariff initiative targeting imports from foreign countries.
China then imposed 34% tariffs on the U.S. in response.
The U.S. and China previously engaged in a major trade war during Trump’s first term.
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