Tue Apr 08 11:40:00 UTC 2025: ## US Holds “Substantial Advantage” in Trade War with China, Says Treasury Official
**WASHINGTON D.C. –** The United States holds a significant advantage over China in the escalating trade war, according to Treasury Secretary Scott Bessent. Speaking on CNBC’s Squawk Box, Bessent dismissed China’s recent tariff increases as a “losing hand,” citing the significantly larger volume of Chinese exports to the U.S. compared to American exports to China.
Bessent’s comments precede the U.S.’s planned increase in tariffs on goods from China and other nations. He described these “reciprocal tariffs” as a tactic to force trading partners back to the negotiating table and bring manufacturing jobs back to the U.S. He anticipates that the tariffs will generate substantial revenue in the interim, eventually declining as domestic manufacturing increases.
While approximately 70 countries have reportedly initiated trade talks with the White House, China has vowed to fight back, imposing a 34% tariff on U.S. products. President Trump has threatened a further 50% tariff on Chinese imports if the initial tariffs are not rescinded. The U.S. recorded a nearly $300 billion trade deficit with China in 2024 – roughly one-third of its total trade imbalance.
The administration’s strategy extends beyond addressing tariffs, focusing also on “non-tariff barriers” such as currency manipulation and regulatory hurdles that the White House argues impede fair trade. Bessent emphasized that all options remain on the table, highlighting the difficulty in quantifying and addressing these less visible barriers.
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