Trump's Treasury Secretary Labels Xi Jinping's Tariff Escalation 'A Big Mistake,' Says Chinese Are 'Playing With A Pair Of Twos'

As the trade war between the U.S. and China intensifies, Treasury Secretary Scott Bessent called Chinese retaliatory measures a "big mistake."

In an interview with CNBC, the federal official said Tuesday that Xi Jinping-led China was playing with a "pair of twos," referring to a weak poker position. 

"What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them," he added.

President Donald Trump announced sweeping tariffs last week, imposing a 10% baseline tariff on its trading partners and additional levies on a few countries that he called "bad actors."

The tariff rate on Chinese imports was as high as 54%, including the 20% announced earlier. China responded in kind by announcing a 34% retaliatory tariff.

The Trump administration has increased the tariff rate announced last week, bringing the cumulative tariffs on Chinese goods to 104%.

Bessent also clarified in the interview the reciprocal tariffs aim to bring its trading partners to the negotiating table and jobs back to the U.S.

"I think you are going to see some very large countries with large trade deficits come forward very quickly," he said, adding, "If they come to the table with solid proposals, I think we can end up with some good deals."

However, Bessent sees revenue from tariffs as a "melting ice cube," helping to build manufacturing facilities in the U.S.

"There should be some level of symmetry between the taxes we begin taking in with the new industry from the payroll taxes as the tariffs decline," he said.

The Treasury Secretary said about 70 countries have contacted the White House for negotiations on the reciprocal tariffs. 

Taiwan and Vietnam, among the hardest-hit nations, have suggested that they will not retaliate and will work toward "zero tariffs" on U.S. imports.

On the other hand, the Chinese Commerce Department accused the U.S. of blackmail and that "China will fight to the end if the U.S. side is bent on going down the wrong path."

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