Treasury Secretary Scott Bessent shared a clear message on Wednesday regarding the United States’ new tariffs: “Do not retaliate.” This statement comes in response to President Donald Trump’s recent announcement of a broad 10% tariff on imports, along with additional tariffs aimed at several nations that the President claims have been taking advantage of American trade practices.
Among the countries targeted are China, facing a hefty 34% tariff, the European Union at 20%, Japan at 24%, and Taiwan at 32%. The increase in tariffs is aimed at addressing the ongoing trade imbalance and ensuring fair practices in international commerce.
During an interview, Bessent advised all countries affected by these tariffs to hold off on retaliation. He emphasized that escalating tensions could lead to more significant consequences, suggesting that it might be wiser to observe how the situation unfolds. He remarked, “If you retaliate, there will be escalation. If you don’t retaliate, this is the high-water mark.”
Interestingly, the list of countries subjected to these tariffs excludes Mexico and Canada, as well as Russia and Belarus, which are currently under sanctions and do not engage in trade with the U.S.
As the tariffs are set to take effect soon, Bessent emphasized their purpose: to create a foundation for sustainable economic growth. He criticized the previous administration’s spending habits, which he believes led to economic uncertainty. Bessent noted, “We are putting ourselves back onto a sound trajectory,” and looks forward to Congress making the tax cuts from 2017 permanent to enhance economic stability.
The administration is committed to fostering an environment that will not only protect American interests but also potentially lead to wealth creation in the country. The immediate goal is to clear up uncertainties surrounding taxes, enabling a more robust economic future. As we observe this situation unfold, it is crucial for American leaders to maintain a focus on fairness in trade practices, ultimately benefiting American workers and businesses.
