Treasury Secretary Scott Bessent calls Beijing’s response ‘unfortunate’ and warns against currency manipulation amid deepening US-China trade war.
April 9, 2025: Washington/Beijing:
Just hours after China imposed retaliatory tariffs of 84% on all US goods, US Treasury Secretary Scott Bessent responded by calling the move “unfortunate” and urged Beijing to return to the negotiation table. Speaking to Fox Business Network, Bessent cautioned China against attempting to “devalue their way out” of the escalating trade war, emphasizing the need for diplomatic dialogue instead of economic brinkmanship.
The tariff standoff was ignited last week when President Donald Trump imposed sweeping 104% tariffs on Chinese goods under his “reciprocal tariff” doctrine. Beijing’s latest response — an increase from the earlier 34% levy — will take effect from April 10, according to China’s finance ministry.
Also Read: Trump’s 104% Tariff Sparks Rare Olive Branch from China to India
Bessent also used the opportunity to highlight a long-standing American concern: fentanyl precursors being exported from China to the US. He urged China to take action against those involved in the supply chain instead of retaliating with tariffs.
In his remarks, Bessent called on US allies to reconsider their trade exposure to China and help in “rebalancing” the global economic structure, indirectly hinting at broader realignment in global supply chains.
📉 Market Fallout:
The tit-for-tat tariff escalation has already spooked global markets. US stock futures plummeted after China’s announcement. As of early morning Wednesday:
- Dow E-minis dropped 517 points (-1.37%)
- S&P 500 E-minis fell 1.21%
- Nasdaq 100 E-minis slid 1.07%
Market analyst Peter Andersen described the situation as a “game of chicken” between two global powers. “Each side is raising the stakes, and the markets are reacting accordingly,” he said, noting the S&P 500 has lost over $5.83 trillion in value since Trump’s global tariff rollout.
🇨🇳 China’s Stance:
China’s Commerce Ministry, in a fresh white paper, warned that it is fully prepared to “fight to the end” if the US continues to escalate economic restrictions. Alongside the tariff hike, 12 American entities were added to China’s export control list, with six more listed as “unreliable entities.”
China also filed a new WTO complaint against the US regarding the additional 50% tariffs, arguing that Washington’s trade measures violate international regulations.
As trade tensions mount with no signs of either side backing down, global markets are bracing for more volatility in the days ahead.
🏷️ Tags:
US-China Trade War, Donald Trump, Scott Bessent, China 84% Tariff, Reciprocal Tariffs, Fentanyl Precursor, WTO Complaint, Global Markets, S&P 500 Crash, Trade Tensions, US Economy, Beijing Retaliation, China Export Control, Stock Market Crash