US Treasury Secretary Scott Bessent has expressed confidence that President Donald Trump’s proposed tariffs will not significantly raise inflation. The secretary cited China’s ability to absorb the costs of increased tariffs, saying “China will eat any tariffs that go on.”
The US is set to impose 25% tariffs on imports from Mexico and Canada, while also increasing duties on Chinese imports by an additional 10%. Economists have raised concerns about the potential impact on inflation. However, Bessent believes China’s business model allows it to export its way out of inflationary pressures.
China has threatened to retaliate against US tariffs, with its Ministry of Commerce stating that it “firmly opposes” the latest hike and vows to take necessary countermeasures to defend its rights and interests. Mexico, however, is reportedly willing to match the US tariffs on China, while Canada remains uncommitted.
Source: https://www.cnbc.com/2025/03/02/scott-bessent-says-trump-tariffs-wont-cause-inflation-to-increase.html