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Bessent Tries to Justify Trade War—and It Sounds Insane

Alright guys, we’ve officially entered the Twilight Zone. I honestly can’t wrap my head around how one of the sharpest minds on Wall Street keeps sounding more unhinged every time he speaks. I’m talking about none other than Scott Bessent—now the U.S. Treasury Secretary—who’s been on a full-blown media tour defending Trump’s trade war with China.

The U.S. is about to hit Chinese goods with a massive 104% tariff, and somehow, Bessent is painting this as a strategic win. He claims China made a huge mistake escalating things, that they’re “playing with a pair of twos,” and that President Trump has “maximum negotiating leverage” right now.

“Many of our trading partners have kept their cool… they’ll get priority. I think it was a big mistake for China to escalate, because they’re playing with a pair of twos. We export one-fifth to them of what they export to us—so it’s a losing hand for them.”

Honestly, he sounds shaky, like he doesn’t even believe what he’s saying.

Bessent argues that because the U.S. runs a trade deficit with China, we hold the winning hand. His logic? China exports way more to the U.S. than the U.S. exports to China, so tariffs hurt them more. But this is a flawed—and frankly dangerous—assumption.

Let’s not sugarcoat it: U.S. consumers are about to get screwed. America imported $440 billion in goods from China last year—13.4% of all goods imports. That’s not small. A 104% tariff means those goods are about to cost a hell of a lot more.

Take Walmart, for example—over 70% of their inventory comes from China. You think that doesn’t trickle down to regular, low-income Americans? Of course it does. Everyday essentials, groceries, electronics—it’s all going up.

And it’s not just a national issue. States like Nevada (26%), California (25%), Washington D.C. (21%), and New Mexico are heavily dependent on Chinese imports. These places are staring down a serious inflation shock.

Oh, and let’s talk electronics. 41% of all U.S. consumer electronics come from China. Say goodbye to affordable smartphones and laptops. So how exactly is this a “win” when Americans are already buckling under years of inflation?

Sure, China relies on U.S. consumers. But are we so essential that they’ll cave? Probably not. And here’s where it gets crazier—China has diversified. They've been preparing for this.

Even Fox Business is raising red flags about the logic behind these tariffs. The way they're calculated is broken, and the obsession with trade deficits just doesn’t make sense in a modern global economy.

“If you get your tax cuts and deregulation, we’ll grow faster—and faster growth naturally leads to trade deficits. So why are we using trade deficits as justification for tariffs?”

Exactly. The trade deficit doesn’t mean we’re “losing”—it means we’re buying cheaper goods so our economy can stay productive. Bessent himself admits the trade deficit reflects other macro factors: the dollar’s strength, budget deficits, and trade terms—not unfair practices alone.

But none of that seems to matter anymore. The U.S. is pushing ahead, and by the time you hear this, that brutal 100%+ tariff might already be in effect.

This isn’t just a tough stance—it’s full-blown decoupling.

Yes, the U.S. has had talks with 70+ countries. But the reality is, China is still the biggest trade partner for most of the world. From 2017 to 2023, global demand for Chinese goods has only grown—especially in emerging markets.

Nations like Brazil, Indonesia, and even G7 members like the UK are increasing imports from China, even while they import less from the rest of the world. That’s China’s future: selling to fast-growing economies expanding at 3–7% annually. Meanwhile, the U.S. is expected to contract in 2025.

So even if the U.S.-China trade relationship collapses, China’s economy isn’t going into a tailspin. In 2023, China exported over $500 billion to the U.S.—but that was just 2% of their GDP. Their economy still grew 5% last year.

This trade war is a desperate gamble. And it’s not China that’s cornered—it’s us. If anything, the U.S. could end up more isolated than ever before.

US Finance Giant Downgrades US Stocks

Let’s talk about the chaos surrounding Trump’s trade war—and the people egging him on. His advisor Peter Navarro once proposed a 25% flat tariff on every country in the world. Yes, even Penguin Island (if it existed). That’s not a joke—that’s the level of thinking that’s apparently shaping U.S. trade policy right now.

Imagine this: instead of a 10% tax on select countries, Trump would impose 25% tariffs across the board, globally. That’s economic self-sabotage disguised as nationalism.

Navarro is a known trade hawk, and he keeps insisting the U.S. economy can handle this without consequence. He’s going on TV claiming the markets are bottoming out and that American companies will soon lead a miraculous recovery.

“The market is finding a bottom now. It’s going to be S&P 500 companies that produce here in the U.S. who’ll lead the recovery. Dow 50,000—I guarantee that. And no recession. Why? Because we’re passing the biggest, broadest tax cut in history. That’s the stimulus. No inflation either.”

Yes, you heard that right. The U.S. government is “guaranteeing”:

• Dow 50,000

• Zero inflation

• No recession

Welcome to voodoo economics, 2025 edition.

Meanwhile, markets are bleeding. The S&P 500 just collapsed from 5600 to 5000 in days. As of yesterday, we closed below 5000. This is the fallout from those “reciprocal tariffs” they keep pushing.

Navarro’s fantasy makes Yellen and even Scott Bessent look like Nobel Prize winners. He’s making these outrageous claims while Wall Street is screaming the opposite.

Even Goldman Sachs is warning of a bear market—and let’s be honest, we’re already in one. BlackRock has downgraded U.S. equities. Across the board, sentiment is deeply bearish, and not even the spin doctors can hide it anymore.

U.S. equities are among the most overvalued in the world. So when Trump drops one of his signature “wow” statements or tariff bombs, it’s no surprise when everything around us crashes.

In just a week, we’ve watched massive wealth destruction—and there’s no sign of it slowing down.

We Might Already Be in a Bear Market—and the Worst Could Still Be Ahead

It’s no longer a question of if we’re heading into a bear market—we might already be in one. According to Goldman, the average market downturn during these kinds of crises can reach 30%. So far, we’re only down about 12–13% since Trump’s latest announcements. That leaves plenty of room—another 10% or more—for this market to crash further.

This is the cost of voodoo economics.

Wall Street has turned into a giant casino, with Trump’s headlines lighting up the floor like slot machines. But when even BlackRock is warning that Trump’s making a mistake, you know it’s serious.

Let’s not forget—this is the same BlackRock that has a vested interest in keeping the administration happy. They’ve tried to buy Chinese ports in the Panama Canal. They should be painting a rosy picture—but they’re not. That says a lot.

Consumer demand is cratering, and these extreme tariffs—especially 104% on China—are going to crush what’s left of the economy. At this level, it’s less a tariff and more like a sanction. And when these go live, expect retaliation. China is likely to strike back with their own massive tariffs, possibly 100% or higher. That would kill thousands of U.S. jobs and devastate entire industries.

Former Treasury Secretary Lawrence Summers is already warning:

• 2 million job losses

• Recession incoming

• $5,000+ in lost income per U.S. household per year

Is this fearmongering—or just the blunt truth?

Summers went even further. He compared the current tariff escalation to the Smoot-Hawley Tariff Act—a move that made the Great Depression worse. Back in 1930, the U.S. raised tariffs on over 20,000 goods to “protect” domestic industries. The result?

• Global trade collapsed

• Exports dropped by 50%

• U.S. farmers and manufacturers got decimated

And today, it’s even riskier. A global boycott of American goods doesn’t need a counter-tariff—just a shift in consumer sentiment.

We are in the danger zone, no two ways about it.

U.S.-China Collision Course: No Exit in Sight

Instead of de-escalating, the rhetoric from Trump’s administration is heating up. They believe they can win this confrontation—not just with China, but with the entire world.

“China’s entire economy depends on exports to the U.S. They’ve manipulated their currency, dumped subsidized goods, and undermined U.S. industries. But now, they’re finally facing a president who won’t back down.”

That’s the White House’s take. And here’s the reality: neither side can afford to blink.

Beijing has said they’ll fight this to the bitter end—and they’ve got the fiscal firepower to do it. Meanwhile, Trump is locked in. He ran on reviving U.S. manufacturing. To fold now would look like betrayal to his base—and worse, a blow to his ego. So buckle up. We’re heading straight into a storm. Is there an off-ramp? Maybe. But right now, I don’t see it.