China’s 84% Tariffs on US Goods Unfortunate, Says Treasury Secretary Scott Bessent
Key Highlights:
Washington / April 9, 2025 — U.S. Treasury Secretary Scott Bessent on Wednesday criticized China’s decision to impose 84% retaliatory tariffs on American imports, calling it a “losing proposition” and urging Beijing to return to the negotiating table.
In an interview with Fox Business Network, Bessent said China’s failure to engage diplomatically was a setback not just for trade relations but for global economic stability.
“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,” Bessent remarked.
Trade Rebalancing Needed, Not Escalation
Bessent emphasized that the current standoff presents an opportunity to rebalance global trade, arguing that the U.S. is shifting toward manufacturing, while China must focus on increasing domestic consumption.
“That is the big win here,” he said. “The U.S. is trying to rebalance toward more manufacturing. China needs to rebalance toward more consumption.”
His comments come amid rising global concern over how the latest escalation in tariffs — following President Trump’s imposition of a 104% duty on Chinese goods — could spiral into a full-blown trade and currency war.
Currency Devaluation Warning to China
Bessent issued a stern warning to Beijing regarding potential currency manipulation as a response to the new U.S. tariffs.
“If China starts devaluing, then that is a tax on the rest of the world and everyone will have to keep raising their tariffs to offset the devaluation,” he said. “So I would urge them not to do that and to come to the table.”
Analysts say yuan devaluation could trigger a domino effect, with other countries forced to respond through their own protective tariff measures, further fracturing the global trade framework.
Chinese Stocks on US Exchanges Also Under Review
In a significant policy signal, Bessent did not rule out the possibility of removing Chinese stocks from U.S. exchanges, stating that “all options are on the table” as part of Washington’s effort to protect national economic interests.
Such a move would follow a broader decoupling trend between the U.S. and China, encompassing not just trade and tariffs, but financial market exposure, technology access, and supply chain control.
High Stakes, Uncertain Path Forward
With China’s 84% retaliatory tariffs now in effect, pressure is mounting on both sides to resume talks and avoid further economic fragmentation. While Bessent signaled a willingness to engage, his comments also underscored the firm posture Washington intends to maintain.
“We’re not backing down from holding China accountable. But we do believe there’s a path forward — through negotiation, not escalation,” Bessent concluded.
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