Washington: US Treasury Secretary Scott Bessent has issued a strong warning to nations considering countermeasures against Donald Trump’s newly announced tariffs. Speaking on Fox News, Bessent urged countries to refrain from retaliation, cautioning that doing so would only worsen the situation.
“My advice to every country right now is, do not retaliate,” Bessent stated. “Sit back, take it in, let’s see how it goes. Because if you retaliate, there will be escalation. If you don’t retaliate, this is the high watermark.”
The statement comes after Trump declared April 2nd as “Liberation Day”, introducing steep reciprocal tariffs on nations imposing high trade duties on US goods. These measures include a 26% tariff on Indian imports, 34% on China, 24% on Japan, and 46% on Vietnam, among others.
Fears of a Global Trade War
Economists fear that the aggressive tariff strategy could trigger a full-scale trade war. Several nations, including India, China, and the European Union, are reportedly considering countermeasures.
Despite Trump’s claims that these tariffs will bring jobs back to America, global markets have reacted negatively, with major stock indices, including the S&P 500 and Nasdaq, plunging after the announcement.
With tensions rising, all eyes are on how India, China, and the EU respond in the coming days. Will they heed the US Treasury’s warning, or will the world witness an all-out trade war?
