US Treasury Secretary Scott Bessent says: China tariff escalation a big mistake

 China tariff escalation a big mistake, US Treasury Secretary says:

US Treasury Secretary Scott Bessent has called China's recent tariff escalation a "big mistake". In a CNBC interview, Bessent explained that the US will actually benefit from China's increased tariffs due to the country's trade deficit. The reasoning is simple: the US exports only a fifth of what China does, putting China at a disadvantage. This perspective is part of the Trump administration's approach to trade policy, which aims to counter unfair trade practices and generate revenue.

Trade Negotiations President Donald Trump will personally oversee trade negotiations, with all options on the table. This includes potential adjustments to tariffs and trade agreements with countries like China. Bessent emphasized a three-pronged approach to tariffs, focusing on targeted tariffs to address unfair practices, general tariffs as revenue generators, and tariffs as negotiation tools for specific policy objectives.

European Union and Alternative Deals The European Union may need to lower non-tariff barriers, such as value-added taxes, to reach a trade deal with the US. Additionally, the US is exploring alternative partnerships, like an energy deal in Alaska, which Japan and South Korea have shown interest in financing. This deal could create American jobs and help narrow the trade deficit. Bessent's stance on China's trade practices is clear. He believes China hasn't fulfilled its obligations for agricultural commodity purchases as agreed upon in the Phase I deal. The US is looking to press China to resume these purchases and is considering a "catch-up provision" to compensate for the shortfall in Chinese purchases over the past four years.