His remarks come just one day before the U.S. is set to raise tariffs on Chinese imports to 104%, part of what the administration calls “reciprocal tariffs” aimed at pressuring trade partners and reshoring American manufacturing.
Bessent emphasised that the tariffs are part of a broader strategy to bring jobs back to the US and encourage fair trade practices. “If we put up a tariff wall, the ultimate goal would be to bring jobs back. But in the meantime, we will be collecting substantial tariffs,” he said. “If we’re successful, tariffs would be like a melting ice cube—as manufacturing grows here, tariff revenues decline, and payroll taxes increase.”
He revealed that around 70 countries have already reached out to the US to begin negotiations. Japan has been among the most proactive, and Bessent said the White House expects other major economies with significant trade deficits to follow suit.“If they come to the table with solid proposals, I think we can end up with some good deals,” he added.
Despite growing outreach from other nations, China remains defiant, having recently imposed 34% tariffs on US products and vowing to “fight to the end.” In response, President Trump has threatened an additional 50% tariff on Chinese imports if Beijing refuses to withdraw its levies.
The US ran a $300 billion trade deficit with China in 2024, accounting for roughly a third of its global trade imbalance.
Beyond headline tariff rates, Bessent pointed to nontariff barriers as a major focus of US trade policy—citing currency manipulation, Europe’s value-added taxes, and other hidden practices.
“Everything is on the table,” he said. “The academic literature shows that nontariff barriers are more insidious—they’re hidden, they’re obfuscated, and they distort trade even more.”
