Treasury Secretary Scott Bessent said that on Tuesday the US has a significant advantage over China when both nations mention threats in the developing trading war.
“I think it was a big mistake, this Chinese escalation, because they play with a pair of two,” Bessent said during an interview about CNBC, “Squawk box. “” What do we lose by the Chinese raising tariffs on us? We export to them one -fifth of what they export to us, so it is a lost hand for them. “
Comments appear a day before the USA, raising their duties in China and dozens of other nations within the so -called mutual tariffs, the purpose of which, as Bessent said, is to bring trade partners to the negotiating table and work back to the USA to the USA
Until now, Japan was at the forefront of countries willing to negotiate, and the White House expects many others.
“I think you will see very large countries with large trade deficits that appear very quickly,” Bessent said. “If they come to the table with solid suggestions, I think we can end up with large offers.”
He added that ultimately the hope will be to generate both jobs and revenues from tariffs.
“If we put a tariff wall, the ultimate goal would be to restore work back to the USA, but in the meantime we will collect significant tariffs,” Bessent said. “If we succeed, the tariffs would be in a sense melting the cube of ice because you accept revenues, because production plants are built in the USA and there should be a certain level of symmetry between taxes, which we begin to accept with a new industry from pay taxes with a decrease in tariffs.”
Although he said that about 70 countries reached the White House to start talking, China promised that they “fight to the end” and imposed 34%on American products.
In return, the president Donald Trump He said that another 50% of fees for Chinese imports would hit if the tariff is not withdrawn. In 2024, the United States concluded a commercial deficit worth almost $ 300 billion with China, i.e. about a third of the entire imbalance.
Thanks to Trump tariffs, he hopes to open more markets for American products and Reshore production operations for the USA, but the administration does not simply focus on absolute levels of fariffs from other nations, but rather non -thread barriers, such as currency manipulation, tax on value added in Europe and other methods that White House claims that the Fair Trade subordinate.
“Everything is on the table,” Bessent said. “Academic literature shows that in fact these are non -threaded barriers that are more difficult, both more difficult to estimate and … are more insidious because they are hidden, they are darkened.”
Futures on the stock exchange, which already pointed to a strong open open to Wall Street, added to profits after Bessent spoke.
Get a ticket to pro live
Join us on the New York Stock Exchange!
Uncertain markets? Get the edge with CNBC Pro LiveAn exclusive, inaugural event at the historic New York Stock Exchange.
In today's dynamic financial landscape, access to experts is the most important. As a CNBC PRO subscriber, We invite you attach to us for ours The first exclusive, personal CNBC Pro Live event in the iconic Nyse on Thursday, June 12.
Join the Interactive Pro Clinics led by our professionals Carter Worth and Niles AND Dan Ives, with a special edition of Pro talks with Tom Lee. You will also get the opportunity to make contacts with CNBC experts, talents and other PRO professionals during the exciting cocktail hours on the legendary commercial floor. Tickets are limited!