Treasury Secretary Bessent Cites China's Rare Earths Restrictions to Defend Trump Tariffs

Breaking News: Treasury Secretary Scott Bessent Defends Trump Tariffs Ahead of Supreme Court Ruling Treasury Secretary Scott Bessent has made a last-ditch effort to justify President Donald Trump's global tariffs, citing China's restrictions on rare earths exports as a key justification. In an interview on Fox News Sunday, Bessent expressed optimism that the Supreme Court will rule in the administration's favor, potentially paving the way for the reinstatement of tariffs that have been blocked by lower courts. The Supreme Court is set to hear arguments on the case, which challenges the White House's use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose tariffs tied to the fentanyl trade. The case has significant implications for the US economy, with estimates suggesting that the tariffs could cost American businesses up to $80 billion annually. Bessent's comments come just days before the Supreme Court is scheduled to hear arguments on the case, which is expected to be a closely watched and highly contentious hearing. The administration has argued that the tariffs are necessary to address the threat posed by China's fentanyl trade, but lower courts have ruled that the use of emergency powers is not justified. The tariffs in question were imposed by Trump in 2020, and were initially set to be reinstated in 2022. However, lower courts blocked the move, citing concerns that the administration had exceeded its authority under the IEEPA. The Supreme Court's ruling is expected to have significant implications for the US economy, with some estimates suggesting that the tariffs could lead to a 10% increase in prices for American consumers. In the background, China's restrictions on rare earths exports have been a long-standing point of contention between the two countries. Rare earths are a critical component in the production of high-tech goods, including smartphones and electric vehicles. China's restrictions on exports have led to concerns that the country is using its dominance in the rare earths market to exert leverage over other countries. The Supreme Court's ruling is expected to be announced in the coming weeks, with a decision likely to be made before the end of the year. The outcome of the case will have significant implications for the US economy, and could potentially lead to a shift in the global trade landscape.