US Minister Of Finance: Reply To Increased Tariffs Enforced By China's Big Mistakes

US President Donald Trump/PHOTO via Instagram @whitehouse

JAKARTA - The United States has called China's response to President Donald Trump's import rate a grave mistake. China retaliated against Trump by increasing the import duty rate of American goods.

"I think China's escalation is a big mistake," US Treasury Secretary Scott Bessent said in an interview with CNBC.

"We are a deficit country. So what would be the loss for us if China raised the tariff on us? We export a fifth of what they export to us. So it is a loss for them," he continued.

President Donald Trump will be personally involved in trade negotiations, Bessent said.

"Everything is on the table," Bessent said when asked if the European Union needed to lower non-tariff barriers including value added tax.

The United States will see what its trading partners have to offer, citing the energy deals in Alaska that Japan and South Korea have expressed interest in financing them.

"So it could be an alternative for them to progress with that, because it will not only provide a lot of work for America, but will also narrow down the trade deficit," Bessent said.

China previously insisted it refused to comply with what it called "extortion" from the United States because the global trade war triggered by President Donald Trump's massive tariffs showed no sign it would subside on Tuesday.

Beijing's remarks came after Trump threatened to raise US import rates from the world's number 2 economy to more than 100 percent on Wednesday in response to China's decision to match Trump's "return" import duties last week.

"The US threat to increase tariffs against China is a very fatal mistake, which once again shows the nature of American extortion," the Chinese Ministry of Commerce said.

"If the US insists on doing what it wants, China will fight until the end," China continued.

Chinese goods manufacturers ranging from eating utensils to floor warned of profits, went to great lengths to plan a new factory abroad, and bid for prices with customers as they were shaken by fare news.

The European Union has proposed its own payout rates for Trump's attacks that have hit dozens of countries, sent financial markets plummeting, and sparked global economic expectations towards a recession.