Bessent Says Tariffs On China Are 'Far From A Joke,' Dismisses Treasury Dumping Fears

U.S. Treasury Secretary Scott Bessent hinted at confidence in the speed of trade negotiations and the stability of U.S. financial markets despite recent volatility in bonds and the dollar. The Trump administration is racing to lock in multiple agreements within a tight 90-day window.

In an interview on Monday with Bloomberg's Annmarie Hordern during his visit to Buenos Aires, Bessent outlined a fast-moving agenda aimed at reshaping global trade relationships while maintaining a harder-line stance on China. He rejected claims that steep trade tariffs are a “joke.”

Fast-Tracking Trade, Starting With Allies

Bessent said the White House is entering a new phase of trade talks following a "90-day pause" ordered by Trump to set the stage for wide-ranging negotiations.

"We’re setting up a process and we are going to run that process. It's going to be orderly," Bessent said, noting the administration had already met with Vietnamese and Japanese officials and will continue with South Korea and Spain this week.

The goal is to finalize "agreements in principle" with a wide number of trading partners before the 90-day window closes. Bessent suggested that early movers could gain more favorable terms.

"Usually, the first person who makes a deal gets the best deal," he said.

While much attention is focused on tariff levels, Bessent said the real challenge lies in non-tariff trade barriers such as subsidies, currency manipulation and regulations that distort market access.

"It's not just about tariffs," he said. "It's the non-tariff trade barriers that are more insidious, more difficult to spot."

China: Strategic Rival, Not Just A Trade Partner

Pressed on whether trade policy was also a form of China policy, Bessent agreed that Latin America's economic direction was part of a broader geopolitical contest.

"We are trying to keep from happening in Latin America what has already happened in Africa," he said, referencing China's use of debt diplomacy and resource-exchange deals. He called some of Beijing's lending practices "rapacious" and warned that generations could be left poorer.

Argentina has a currency swap line of $18 billion with China's central bank. Bessent said the Trump administration hopes that, over time, Argentina will build enough foreign exchange reserves to unwind that arrangement.

As for direct trade talks with Beijing, Bessent said discussions "will come from the top," referring to President Trump and China's President Xi Jinping.

He dismissed China's claim that the new U.S. tariffs are a "joke," adding, "These are big numbers. It's far from a joke."

Treasury Volatility? Just Leverage Unwinding

Financial markets have been rattled by the rapid rise in Treasury yields, with the 10-year jumping nearly 50 basis points last week and the dollar – as broadly tracked by the Invesco DB USD Index Bullish Fund ETF UUP – weakening by almost 3%.

Still, Bessent said there's no indication of foreign selling or a broader loss of confidence in U.S. debt.

"I don't think there's a dumping," he said. "We saw increased foreign competition" in last week's long-dated Treasury auctions, including the 10-year and 30-year bonds.

Bessent attributed the price action to leveraged funds getting caught offside during a short-term spike in volatility. "I think this is one of those occasional VAR shocks that you get in the trading community."

Despite concerns voiced by investors and analysts, Bessent maintained that the U.S. dollar remains the world's reserve currency and that the administration still supports a strong dollar policy.

"We are still a global reserve currency," he said.

Fed Independence, Powell's Future And Deregulation Agenda

Asked about the future of Federal Reserve Chair Jerome Powell, whose term ends in May 2026, Bessent said discussions about potential successors would begin in the fall but stressed the Fed's independence.

"Monetary policy is a jewel box—it's got to be preserved," he said.

Bessent added that markets overly focused on tariffs may be missing the broader three-part plan the administration is rolling out: tariffs, tax cuts and deregulation.

"The tariff sequencing was always going to be first," he said, adding that tax legislation is "moving quickly" and deregulation will kick in this fall. He dismissed the idea that only a tax extension is on the table, saying the GOP is showing "remarkable unity" on broader fiscal reforms.

As for his message to markets, Bessent borrowed from President Trump: "Stay cool."

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