US Treasury Secretary slams China’s tariff escalation, calls it "big mistake"

US Treasury Secretary Scott Bessent stated that the United States holds a significant advantage over China amid the growing trade war between the two nations.

Bessent criticized China's escalation, asserting that the country is in a losing position in the trade dispute, Caliber.Az reports via foreign media.

“I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos,” Bessent said. “What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”

Bessent's comments come as the US prepares to raise tariffs on China and other countries as part of reciprocal tariffs aimed at bringing trading partners to the negotiating table. He emphasized that the goal of the tariffs is to bring jobs back to the US while negotiating better trade deals.

So far, Japan has been one of the most eager nations to engage in talks, according to Bessent, with the White House expecting other countries to follow suit. “I think you are going to see some very large countries with large trade deficits come forward very quickly,” Bessent said. “If they come to the table with solid proposals, I think we can end up with some good deals.”

The ultimate aim of the tariffs, Bessent noted, is to generate both jobs and revenue for the US “If we put up a tariff wall, the ultimate goal would be to bring jobs back to the US. But in the meantime, we will be collecting substantial tariffs,” he said. “If we’re successful, tariffs would be a melting ice cube, in a way, because you’re taking in the revenues as the manufacturing facilities are built in the US, and there should be some level of symmetry between the taxes we begin taking in with the new industry from the payroll taxes as the tariffs decline.”

Bessent also highlighted that while over 70 countries have reached out to the White House for negotiations, China has vowed to “fight to the end” and has imposed a 34 per cent tariff on US goods. In retaliation, President Donald Trump has threatened a 50 per cent tariff increase if China does not withdraw its tariffs.

The US trade deficit with China reached nearly $300 billion in 2024, accounting for a third of the overall trade imbalance. Bessent added that the administration is focused on addressing non-tariff barriers, such as currency manipulation and Europe's value-added tax, which are often more difficult to quantify but equally detrimental to fair trade. "Everything is on the table,” he stated, stressing the importance of tackling these hidden trade obstacles.

By Vafa Guliyeva