According to Reuters, the U.S. Treasury Secretary, Scott Bessent, said it was a big mistake for China to increase tariffs on American products. He explained during a CNBC interview on Tuesday, April 8, that this move hurts China more than it hurts the U.S.
In very simple terms, China sells a lot more to the U.S. than the U.S. sells to China. So, if China raises taxes (called tariffs) on American goods, it doesn’t affect the U.S. too much because the U.S. doesn’t sell them that much. On the other hand, the U.S. buying less from China can really hurt China’s economy. As Bessent said, “That is a losing hand for them.” This quote was reported by Reuters.
The main reason behind the U.S. having talks with other countries about trade isn’t because the stock market is falling—it’s because many countries have asked the U.S. for better trade deals. That’s another insight Bessent shared, according to Reuters.
President Donald Trump will be leading the trade talks himself, and everything is open for discussion, even taxes added to European goods before they are sold (called non-tariff barriers like value-added tax).
Bessent also mentioned that countries like Japan and South Korea are interested in helping to fund an energy project in Alaska. He said this could be a great way to create more American jobs and help reduce the trade gap—the amount the U.S. buys compared to what it sells. Reuters noted this as a smart strategy that gives the U.S. more power at the negotiation table.
Unique Perspective:
What stands out here is that the U.S. is playing its cards wisely. Instead of panicking over China’s move, it’s focusing on forming smarter deals with willing partners. Also, by looking at new energy deals like the one in Alaska, America is thinking long-term—jobs for locals and more money staying inside the country.
This approach shows that the U.S. isn’t just reacting to China, but moving strategically, which could be a strong message for other countries wanting to work with the U.S.
Credit to Reuters for providing this update and insight into how the U.S. is managing its global trade relationships.