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By Shane Croucher
Senior Editor
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Treasury Secretary Scott Bessent dismissed China's hiking of its tariff on U.S. imports to 84 percent, saying it exported far more than it imported.
"They are the surplus country," Bessent said on Fox Business on Wednesday morning. "Their exports to the U.S. are five times our exports to China. So, they can raise their tariffs, but so what?"
Bessent also said that "everything is on the table" when asked if the Trump administration would remove Chinese stocks from U.S. exchanges.
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Why It Matters
Global markets have suffered sharp losses over fears of a painful and widespread economic fallout from the trade war, which stretches beyond the U.S. and China.
Trump hit dozens of America's trading partners with tariffs in April, and many have retaliated in kind.
In the U.S., there are fears of a recession and higher prices, which pose political problems for Trump and the Republicans heading into the 2026 midterms.
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What To Know
China raised its tariff on U.S. imports after Trump increased his to 104 percent.
The U.S.-China trade war has escalated in a tit-for-tat of tariff exchanges and other countermeasures since April 2, when Trump unleashed his reciprocal tariffs.
China's latest tariff is an additional 50 percent to the previous rate of 34 percent. It follows Trump's raising of the tariff on Chinese goods to 104 percent as of Wednesday.
The Chinese Commerce Ministry said separately that it was adding 12 more American companies to its export controls list.
Trump had warned China on Monday to withdraw its retaliatory tariff of 34 percent by Tuesday or face an additional 50 percent U.S. tariff on Wednesday.
The deadline passed and the new U.S. tariff rate for Chinese imports came into effect.
He also said in a post on Truth Social that "all talks with China concerning their requested meetings with us will be terminated."
Trump has said he is trying to protect and rebuild domestic manufacturing in the U.S. and sees tariffs as a tool to achieve it. He argues trade deficits—where imports are greater than exports—such as that between the U.S. and China show the current relationship is unfair.
Opponents of tariffs say they are a tax on consumers who end up paying them through higher prices.
Tariffs will hit China, an export-reliant economy, particularly hard. It is already experiencing an economic slowdown.
What People Are Saying
Treasury Secretary Scott Bessent, on Fox Business: "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."
The Chinese Finance Ministry, in a statement: "The U.S. escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes on China's legitimate rights and interests and seriously undermines the rules-based multilateral trading system."
What Happens Next
There's no sign that the U.S.-China trade dispute is coming to a happy resolution anytime soon. Both sides have signaled a willingness to fight hard, and it could result in more exchanges of tariffs and other trade barriers.
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