Bessent calls China "unreliable" trade partner in some areas

US Treasury Secretary Scott Bessent called China an "unreliable partner" in some trade areas as said that the U.S. could threaten tariffs again if China considers shutting off exports of its rare earths.

AI Brief

Bessent says China's critical minerals threat was surprising but insists the US has leverage too.
US-Canada trade ties strained after a political ad, while Trump raised tariffs and halted talks despite an apology.
Bessent is optimistic about the Supreme Court hearing on Trump's use of emergency powers to impose tariffs.

Bessent said on "Fox News Sunday" (Sunday November 2) that China's threat on its critical minerals "surprised" him in early October, and that "we have plenty of things we can hold back too."

Bessent was also non-commital on the U.S. / Canada trade relationship amid tensions over an anti-tariff political advertisement. The ad, commissioned by Ontario Premier Doug Ford, uses a snippet of Republican icon and former President Ronald Reagan saying that tariffs cause trade wars and economic disaster. In response, U.S. President Donald Trump announced that he was increasing tariffs on goods from Canada, and Washington has also halted trade talks with Canada.

Canadian Prime Minister Mark Carney said on Saturday (November 1) he had apologized to Trump over the ad, and had told Doug Ford not to run it. Still, Bessent said on Sunday "A price has got to be paid for this so over time, we'll see what happens."

Finally, Bessent said he was "optimistic" in anticipation of Supreme Court arguments regarding Trump's tariffs and the International Emergency Economic Powers Act. The court is due to hear arguments on a challenge to the IEEPA-based tariffs - currently at about 30% for Chinese goods - on November 5.