'Don't retaliate, sit back...': US Treasury Secretary warns countries against tariff retaliation

Treasury Secretary Scott Bessent - File Photo

US Treasury Secretary Scott Bessent on Wednesday warned trading partners that any retaliation to the barrage of new tariffs from the White House would only result in further escalation.

"My advice to every country right now is, do not retaliate," Bessent told Fox News. "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."

Countries have vowed to hit back at US President Donald Trump's global tariffs onslaught, but left the door open to negotiations as markets tumbled over fears his trade war would damage the world economy.

Trump spared almost no nation on his "Liberation Day", hitting friends and foes alike and reserving some of the harshest tariffs for major trade partners, including the European Union and China.

Separate tariffs of 25 percent on all foreign-made cars and light trucks also went into effect, with auto parts due to be hit by May 3.

Holding up a chart of the sweeping measures in the White House Rose Garden on Wednesday, Trump said this was "one of the most important days, in my opinion, in American history."

"It's our declaration of economic independence," he said.

The tariffs announcement triggered immediate anger around the world, with rival China warning they could "endanger" global economic development.

Some of the worst-hit trading partners were in Asia, including 49 percent for Cambodia, 46 percent for Vietnam and 44 percent for military-ruled Myanmar, recently hit by a devastating earthquake.