WASHINGTON — The recent increase in tariffs by China is a major misstep, according to U.S. Treasury Secretary Scott Bessent, who emphasized that trade negotiations are being shaped by international discussions rather than market fluctuations.
Speaking to CNBC on Tuesday, Bessent pointed out that China’s move to raise tariffs puts them at a disadvantage. “It’s a strategic error by China,” he remarked. “We run a trade deficit, which means their exposure to our market is far greater than ours to theirs. For every dollar we export to China, they send us five. They’re playing a weak hand.”
Bessent confirmed that President Donald Trump will take an active role in shaping the trade dialogue, underscoring the administration’s commitment to direct involvement.
When questioned about trade barriers with the European Union, including value-added taxes, Bessent responded, “Nothing is off the table.” He also highlighted potential opportunities in energy, mentioning that an Alaskan energy project has attracted interest from Japan and South Korea.
“Such a deal wouldn’t just create thousands of jobs here at home,” he noted, “but it would also help shrink our trade deficit.”