US Senate to let Trump impose 500% tariffs on China over Russian oil trade: Scott Bessent

US Secretary of Treasury Scott Bessent - File Photo

The US Senate is ready to give President Donald Trump sweeping authority to impose tariffs of up to 500 per cent on Chinese imports, according to Treasury Secretary Scott Bessent.

Speaking at the CNBC Invest in America Forum in Washington on the sidelines of the IMF and World Bank annual meetings, Bessent said the measure has strong backing within the Senate. He appeared alongside US Trade Representative Jamieson Greer as they discussed the administration’s “Game Plan for US Investment.”

“The US Senate is ready to support the idea of giving President Donald Trump the right to impose 500% tariffs on China for Beijing’s purchase of Russian oil,” Bessent told reporters.

He accused Beijing of indirectly funding Russia’s war in Ukraine through energy purchases. “It is the purchase of Russian oil by China that fuels the Russian war machines. China buys 60%, six zero per cent, of Russian energy. They buy 90% of Iranian energy,” he added.

Tariff vote and political backdrop

Earlier in May, the US Senate voted 49-49 on a resolution to block Trump’s tariffs, effectively rejecting the move to limit his authority. The decision reflected bipartisan unease about potential economic repercussions but ultimately cleared the path for the administration to move forward.

Bessent said that “85 US senators were ready to back Donald Trump” and allow him to introduce the unprecedented tariffs. While the May resolution was widely viewed as symbolic, it underscored the strong political support the President retains on trade policy. The measure also faced little risk of being overturned by the Republican-controlled House of Representatives and would likely have been vetoed by Trump himself.

Talks with Beijing continue

Despite escalating tensions, Bessent struck a positive tone on the ongoing discussions with China. “I’m optimistic. We are now communicating at (a) very high level,” he said, noting that both sides are also conducting working-level talks during the IMF and World Bank meetings.

The remarks come amid renewed strain in US-China relations following Beijing’s restrictions on rare-earth exports, which Washington sees as an attempt to gain leverage in trade negotiations.

Trump and Xi to attend APEC Summit

President Trump is scheduled to arrive in South Korea on October 29 ahead of the Asia-Pacific Economic Cooperation (APEC) summit, according to the South Korean presidential office. Chinese President Xi Jinping is also expected to attend the meeting, which runs through November 1.

Last week, Trump had threatened to cancel his planned meeting with Xi in response to China’s export curbs on critical technologies. However, Bessent told CNBC on Wednesday that the US President “still planned to meet Xi,” signalling that the administration remains open to dialogue despite the rising tensions.