Treasury Secretary Bessent says Trump tariffs won’t cause inflation to increase

Treasury Secretary Bessent says Trump tariffs won’t cause inflation to increase


U.S. Secretary of the Treasury Scott Bessent speaks at the White House in Washington on Feb. 3, 2025.

Elizabeth Frantz | Reuters

Treasury Secretary Scott Bessent said Sunday that President Donald Trump’s proposed tariffs are unlikely to raise inflation, in part because China will “eat any tariffs that go on.”

Bessent’s comments come just two days before the tariffs are scheduled to go into effect on Tuesday. Trump is expected to impose 25% tariffs on imports from Mexico and Canada. The president also announced the U.S. would impose an extra 10% duty on Chinese imports, on top of the 10% tariff he levied on the country on Feb. 4.

Some economists have raised concerns about the possibility that the tariffs could lead to an increase in inflation and keep interest rates elevated into 2026.

Bessent was asked in an interview on CBS’ “Face the Nation” what impact the tariffs could have on the average household.

“Well, we don’t know yet because it’s path-dependent, but what I can tell you is that I’m not worried about China,” Bessent said. “China will pay for the tariffs because their business model is exporting their way out of this inflation.”

“They will eat any tariffs that go on,” Bessent added.

China’s Ministry of Commerce said Friday that it “firmly opposes” Trump’s latest tariff hike and vowed to retaliate as necessary. After the U.S. enacted an initial round of tariffs in February, China raised duties on certain U.S. energy imports and added two U.S. companies to an unreliable entities list. Experts suggested China could take similar measures again following the addition of fresh tariffs.

“If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests,” a Ministry of Commerce spokesperson previously told CNBC.

Bessent was asked Sunday about his comments last week that Mexico has proposed matching the U.S. tariffs on China to avoid being hit with Trump’s tariffs. He also urged Canada to follow Mexico’s proposal.

“We’ll see. The Mexican leadership has offered to do that,” Bessent said. “We haven’t heard from the Canadians, but I think that would be a very good start.”

He added that announcements from the countries could come on Tuesday, “or maybe the tariff wall goes up, and then we see what happens from there.”

WATCH: China vows to retaliate as necessary after Trump threatens tariff hikes

China vows to retaliate as necessary after Trump threatens another 10% tariff hike



Source

29-year-old American left NYC and moved to Istanbul where he started a tourism company that brought in 0,000 last year
World

29-year-old American left NYC and moved to Istanbul where he started a tourism company that brought in $100,000 last year

In 2017, Doug Barnard, a college student at the time, took a trip to India with his mom. The experience was so impactful that it eventually inspired him to become a full-time traveler—a path he didn’t know was possible for him. “Going to India was an eye-opening experience for me. It was the first time […]

Read More
Nearly 60% of millennials and Gen Zers say their social life is hurting their financial goals
World

Nearly 60% of millennials and Gen Zers say their social life is hurting their financial goals

Emmy, a 31-year-old living in Los Angeles, has been in a credit card debt cycle — racking up balances, paying a card off and then maxing it out again — since she was 18.  When Emmy, who uses a pseudonym online to protect her privacy, started sharing her debt journey on TikTok in March, her […]

Read More
JFK airport’s .5 billion international terminal is taking shape. See what’s inside
World

JFK airport’s $9.5 billion international terminal is taking shape. See what’s inside

The future ticket counter at JFK’s new Terminal 1. Leslie Josephs/CNBC It’s far from finished but the new, $9.5 billion Terminal 1 at John F. Kennedy International Airport is taking shape. Its first phase is slated to open in mid-2026. It will replace the current terminal, which opened in 1998. The terminal, which will be […]

Read More