Last Updated on February 28, 2025
President Donald Trump is exerting his negotiating power on the world stage by gaining potentially “substantial tariff income,” according to Trump’s Treasury Secretary Scott Bessent. The Trump administration official revealed on Bloomberg Television on Friday that Mexico has proposed matching U.S. tariffs on Chinese imports.
David Bessent highlighted the significant potential of tariff income, particularly noting the substantial revenue generated by China tariffs since being implemented. He emphasized the ongoing success in revenue generation from these tariffs.
Bessent discussed President Trump’s interest in reciprocal tariffs, considering it a prominent part of his trade vocabulary. With reciprocal tariffs, the outcome is uncertain as it depends on the actions taken by other countries. Bessent suggested that the path forward regarding reciprocal tariffs could lead to either matching European tax rates on cars or the elimination of tariffs entirely, indicating a path-dependent process that may result in substantial tariff income over the next decade.
Additionally, Bessent highlighted an intriguing proposal by the Mexican government suggesting matching the U.S. tariffs on China as a gesture. He expressed hope for Canadian participation to establish a unified front in North America against the influx of Chinese imports, which he described as stemming from an unbalanced economy of unprecedented scale.
President Trump recently laid out his “Reciprocal Tariff” strategy, which would impose a tariff on “whatever Countries charge the United States of America…”
Trump is still holding his tariff cards close to his chest, as any master negotiator would. According to his Treasury Secretary, Trump’s overall tariff strategy seems to be working.
