Introduction
As global markets churn under the weight of tariff tensions, U.S. Treasury Secretary Scott Bessent has stepped forward with sharp commentary and firm diplomatic signals. Following China’s announcement of an additional 50% tariff on U.S. imports, Bessent reinforced the administration’s hardline stance while confirming that active trade negotiations are underway with over 70 countries reaching out post-“Liberation Day.”

1. China’s Tariff Retaliation: “So What,” Says Bessent
China’s latest tariff announcement underscores the escalating standoff, yet Bessent downplayed the impact:

“China can raise tariffs, but so what,” Bessent said, signaling confidence in U.S. leverage.

His remarks suggest the administration is not backing down, even as reciprocal tariffs disrupt global supply chains and rattle investor confidence.

2. Talks With 70+ Countries: Global Realignment in Progress
According to Bessent:

70 countries have contacted the White House since the new tariff regime began.

These outreach efforts signal a potential reshuffling of global trade alliances, with countries seeking new bilateral agreements amid the U.S.-China impasse.

This shows that despite friction, the U.S. remains a key global economic anchor, attracting dialogue from allies and competitors alike.

3. Delisting Threats and Financial Market Reaction
Bessent confirmed that removing Chinese firms from U.S. stock exchanges is being considered. “Everything’s on the table,” he said—though he emphasized such decisions will rest with President Trump.
This had immediate market repercussions:

Alibaba (NYSE: BABA) gave up much of its earlier 6% gain and ended up just 0.7% higher.

Bond markets saw renewed volatility, with the 10-Year Treasury yield spiking 17 bps to 4.43%.

“There’s nothing systemic about deleveraging in the bond market,” Bessent added, brushing off worries of contagion.

4. Currency War Warnings: China’s Yuan Under Pressure
China’s yuan hit an 18-year low versus the U.S. dollar on Wednesday. Bessent warned:

“If China starts devaluing the yuan, that’s a tax on others.”

This signals heightened concern over a currency war, where competitive devaluation could lead to:

Rising import costs globally

Increased inflation risks

Destabilization of emerging markets

5. Geopolitical Undercurrents: Fentanyl & National Security
In a notable pivot, Bessent also addressed non-economic threats tied to U.S.-China relations. He demanded Beijing take stronger action against fentanyl precursor exports:

“China needs to punish people exporting fentanyl precursors to the U.S.”

This adds a national security layer to already strained trade talks—further complicating any potential resolution.

6. Track the Global Impact in Real-Time
To navigate the fast-moving economic fallout, use:

? Economics Calendar API: Follow upcoming data releases that could influence tariffs, FX rates, and policy decisions.

? Forex Daily API: Monitor real-time currency movements, especially CNY/USD, in light of devaluation risk.

Conclusion
As the U.S. and China double down on tariffs and political brinkmanship, Scott Bessent’s remarks offer a window into the White House’s strategy: talks are open—but strength comes first. With delisting threats, bond market tremors, and currency war fears all in play, the weeks ahead will be critical for both Wall Street and Washington.