On April 9, 2025, Treasury Secretary Scott Bessent made waves with a blunt dismissal of China’s latest move in the intensifying U.S.-China trade war. As China announced plans to slap an 84% tariff on American goods starting Thursday, Bessent shrugged it off with a casual, “So what?” during a Fox Business interview. His remarks reflect the Trump administration’s unwavering confidence in its aggressive tariff strategy, even as global markets tremble and recession fears loom large.
The trade war kicked into high gear earlier this month when President Donald Trump raised tariffs on Chinese imports to a staggering 104%. China fired back, not only hiking its own tariffs from 34% to 84%, but also filing a new complaint against the U.S. at the World Trade Organization and tightening restrictions on American companies doing business with Chinese firms. Beijing vowed to “fight to the end,” signaling no retreat from this economic showdown. Yet Bessent remained unfazed, pointing out China’s massive trade surplus with the U.S.—their exports to America are five times higher than U.S. exports to China. “They can raise their tariffs,” he said, “but so what?”
This isn’t just about numbers—it’s a power play. Trump’s tariff push, which began on April 2 with what he called “reciprocal tariffs,” aims to protect and revive U.S. manufacturing. He sees the trade deficit with China as proof of an unfair relationship and believes tariffs are the fix. Critics, however, argue that these tariffs act like a hidden tax, jacking up prices for everyday Americans and risking a recession as the 2026 midterms approach. China, meanwhile, is feeling the heat too. Its export-driven economy is already slowing, and these tariffs could deliver a brutal blow.
The fallout isn’t limited to the U.S. and China. Global markets have taken a beating, with the S&P 500 suffering its worst week since the COVID-19 pandemic on April 4. Investors are jittery, pulling back from stocks as the trade war ripples outward. Trump’s tariffs have hit dozens of trading partners, sparking retaliation from the European Union, Vietnam, and others. Yet amid the chaos, Bessent downplayed market swings, calling them “uncomfortable but normal deleveraging.” He even brushed off claims of a cratering bond market, insisting there’s no systemic crisis brewing.
The Trump administration isn’t backing down entirely, though. On Wednesday, Trump announced a 90-day pause on tariffs for 75 countries willing to negotiate “in good faith,” a move that sent stocks soaring—the S&P 500 saw its best day since 2008. But China didn’t make the cut. Instead, the U.S. upped its tariff on Chinese goods to 125% after Beijing ignored Trump’s Monday ultimatum to drop its 34% retaliatory tariff or face a 50% increase. Trump doubled down, cutting off talks with China via a fiery Truth Social post: “All talks with China concerning their requested meetings with us will be terminated.”
Bessent framed the pause as part of Trump’s grand plan, not a reaction to market panic. “This was his strategy all along,” he told reporters, emphasizing Trump’s hands-on approach to crafting “bespoke” trade deals. The president echoed that sentiment, urging Americans to “hang tough” through the volatility. “It won’t be easy, but the end result will be historic,” Trump posted on Truth Social over the weekend, promising a revitalized America.
Not everyone’s buying the optimism. China’s Finance Ministry blasted the U.S. tariff escalation as “a mistake on top of a mistake,” accusing Trump of undermining global trade rules. At home, fears of higher prices and economic slowdown are growing louder. Wall Street traders, like those pictured on the New York Stock Exchange floor, are riding a rollercoaster—stocks tanked, then rallied, then dipped again in a matter of days.
So, what’s next? Neither side is blinking. The U.S.-China trade war shows no signs of cooling off, with both digging in for a long fight. For the Trump administration, it’s a gamble—betting that short-term pain will yield long-term gains for American workers. For China, it’s a test of resilience as its economy wobbles. For the rest of us, it’s a waiting game, watching to see if this bold “so what?” attitude pays off or plunges the world deeper into economic uncertainty. One thing’s clear: the stakes couldn’t be higher.
