US Warns: Don't Respond to New Tariffs

US Treasury Secretary Scott Besent cautioned international trading partners Wednesday against responding to recently imposed American tariffs with retaliatory measures, arguing such actions would only worsen trade tensions. In an interview with Fox News, Besent urged countries to absorb the initial impact of the tariffs, suggesting this represents the peak of potential trade conflict. “My advice to every country right now is, do not retaliate,” Besent 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.”

This approach, while seemingly advocating for patience, feels like a high-stakes gamble. Besent’s logic hinges on the belief that unilateral restraint from other nations will somehow de-escalate the situation, effectively signaling to the US that further tariffs aren’t necessary. However, it’s equally plausible that such restraint could be interpreted as weakness, potentially emboldening the US to further escalate trade disputes. The strategy places a significant burden on other countries to absorb economic pain without a guaranteed reciprocal benefit, and risks creating a deeply unbalanced trade dynamic. While avoiding immediate escalation is desirable, a long-term solution requires negotiation and compromise, not simply asking other nations to passively accept unfavorable terms.