The US imposes tariffs as high as 145% on China! US Treasury Secretary Bessent: Further devaluing the yuan is playing with fire.

As the US-China trade war continues to escalate, China announced on April 9th that it would impose an 84% retaliatory tariff on US goods, in response to the Trump administration's 104% tariff policy announced the day before. According to White House officials speaking to foreign media, the current tariffs imposed by the US on China have reached 145%.

U.S. Treasury Secretary Scott Bessent also emphasized in an interview on April 10 that the United States has an absolute advantage. In addition to tariffs, Bessent specifically pointed out that China must confront the fentanyl issue and further warned that if China wants to devalue the yuan again, it will only harm itself.

China has begun to retaliate by imposing an 84% tariff on American goods.

The trade tug-of-war between the U.S. and China continues, and the following are the current competitive dynamics between the two sides:

China announced on April 9th to impose an 84% tariff on American goods.

Trump immediately announced a 104% retaliatory tariff on Chinese goods.

White House officials told foreign media that the U.S. tariffs on Chinese goods have reached 145%.

In this regard, US Treasury Secretary Bessant criticized: "China does not intend to return to the negotiating table, but chooses confrontation, which will only increase its own harm."

The United States demands that China strictly control fentanyl and severely punish drug traffickers.

Bessant pointed the finger at the drug problem during the interview: "Every year, over 100,000 Americans die from fentanyl, and China is the main culprit."

He called for China to impose the same punishment standards as those for domestic drug dealers (, where drug trafficking can result in the death penalty ), to demonstrate sincerity in solving the problem.

There is not just one purpose of tariffs, from combating drugs to restructuring the U.S. economy.

When the host asked what these tariffs are really for, whether it's to combat drugs, increase tax revenue, or to bring the supply chain back to the United States.

Bessant responded: "It's all of them, we are taking a multifaceted approach. Tariffs, tax reforms, and border controls are all coming together to restructure the American economy."

The return of the manufacturing industry will take time, and the transfer of the supply chain cannot be accomplished overnight.

Regarding the issue of Americans getting used to buying cheap goods from China, Bessant admitted, "Shifting the global supply chain to the United States is not something that can be done overnight, but we are working hard to sign trade agreements with allies such as Japan, South Korea, and Vietnam to speed up the process."

Trump is intensifying efforts to push the tax reform agenda, with Congress expected to make a decision by the end of May.

In addition to tariffs, Bessant also revealed that Trump is actively lobbying Congress to advance tax reform proposals, which include:

Tip income is tax-exempt

The possibility of a millionaire tax

Coordinate handling with debt ceiling (Debt Ceiling)

He emphasized that the current progress is "very smooth" and also confirmed that Trump personally stepped in this week to coordinate the divisions within the Republican Party.

Companies are lamenting repeatedly, Bessant states it is just a short-term fluctuation.

Regarding the situation where companies are hesitant to finance, mergers and acquisitions are stalled, capital expenditures are shrinking, and even CEOs are not providing forecasts for 2025, Bessant reassured everyone: "This is a de-leveraging that happens every few years, not a systemic risk. It's just a temporary fluctuation, and things will stabilize once the trade agreement is finalized."

He added that the upcoming deregulation of the banking industry (Deregulation) will further enhance confidence, including relaxing capital thresholds and making it easier for banks to purchase U.S. Treasuries.

Deliberately manipulating the depreciation of the RMB, Bessant warns China not to play with fire.

Bessant also warned that if China were to further devalue the renminbi, it would lead the world into a vicious cycle of "competitive devaluation and taxation," where no one would benefit.

"If China plans to sell off U.S. Treasury bonds again, it will actually strengthen the U.S. dollar, which in turn will lead to an appreciation of the Renminbi, ultimately hurting themselves." he emphasized.

The renminbi cannot become a world reserve currency; the US dollar remains strong.

Regarding external rumors that the dominance of the US dollar may be shaken, Bessant disdainfully stated, "How can a country that uses its own currency as a weapon be trusted with its money?"

He emphasized that the United States still maintains a strong dollar policy and pointed out that military spending and fiscal stimulus in Europe and Japan will further strengthen the dollar's foundation.

Biden's administration has led to an economic recession, while the Trump administration relaxed restrictions to promote private development.

In the face of market expectations of a U.S. economic recession, Bessant admitted that the U.S. did indeed fall into a technical recession under Biden's administration.

But he pointed out that the government is now aiming to "degovernmentalize" the economy, while promoting cuts in fiscal spending, downsizing, and relaxing financial restrictions, allowing private enterprises to drive economic development again.

Trump's policy takes a three-pronged approach: trade, tax reform, and comprehensive relaxation of financial regulation.

In summary, the Trump administration has adopted a three-pronged approach to combat trade and economic challenges:

Trade war: Increase tariffs and pressure China.

Tax reform: Promoting tax exemption for tips, reducing tax burden on the middle class, and possibly imposing a wealth tax to gain consensus in Congress.

Financial deregulation: easing bank regulations, expanding the sources of U.S. Treasury bond purchases, and reducing government intervention.

Finally, Bessant reiterated regarding the current market volatility: "We are deleveraging, but we will recover soon. President Trump’s upcoming new round of policies will again boost the U.S. economy." However, key variables such as whether the market will buy in and whether China will make concessions remain unclear.

This article states that the U.S. has imposed tariffs as high as 145% on China and Canada! U.S. Treasury Secretary Bessent: Further devaluing the yuan is akin to playing with fire. First appeared on Chain News ABMedia.