(MENAFN- Live Mint) US Treasury Secretary Bessent announced on Wednesday (October 15) that 85 US senators are willing to grant President Donald Trump the authority to impose tariffs of up to 500% on China for purchases of Russian oil

Bessent said,“85 US senators are willing to give President Trump the authority to put up to 500% tariffs on China for the purchase of Russian oil.”

The proposed tariffs, if implemented, would represent an unprecedented escalation in US-China trade relations, with potential implications for global oil markets and international trade. And, such extreme measures could trigger retaliatory tariffs from Beijing and disrupt already fragile supply chains.

The United States is prepared to impose tariffs on China for its purchases of Russian oil, but Bessent stressed that Washington's European allies must participate in such action.

“It is the purchase of Russian oil by China that fuels the Russian war machines. China buys 60%, six zero percent, of Russian energy. They buy 90% of Iranian energy,” Bessent said during a press conference on Wednesday.

Bessent added that the US would produce photographs supplied by Ukraine showing Chinese components in Russian drones operating in Ukraine.

Pause on US tariffs for rare earths talks

Bessent suggested the possibility of delaying high US tariffs on Chinese goods if Beijing postpones its plan to tighten limits on critical rare earth exports.

“Is it possible that we could go to a longer roll in return? Perhaps. But all that's going to be negotiated in the coming weeks,” he said, referencing ongoing negotiations between the two countries.

The US and China have agreed to multiple 90-day truces on import duties of up to 145%, with the next deadline approaching in November.

Global coordination against China's export curbs

The Treasury Secretary emphasized the importance of working with allies, including India, to counter China's export restrictions on rare earth minerals.

“This is China versus the world. They have pointed a bazooka at the supply chains and the industrial base of the entire free world,” Bessent said.

He added:“We have already been in touch with the allies. We will be meeting with them this week, and I expect that we will get substantial global support from the Europeans, from the Indians, from the democracies in Asia.”

Bessent characterized China's actions as an attempt to dominate rare earth supplies and vowed that Washington and its allies would not be“commanded nor controlled.”

Rare Earths: Strategic importance

China produces about 70% of the world's rare earth minerals and controls 90% of their processing, making it the dominant global supplier of metals used in electronics, defense, wind energy, and automobiles.

The new rules require foreign firms to obtain Chinese government approval before exporting products containing even trace amounts of these minerals.

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US President Donald Trump responded by threatening additional 100% tariffs on Chinese goods starting November 1 and raised the possibility of cutting off trade in cooking oil, a key biofuel input.

Bessent confirmed that Trump remains committed to meeting Chinese President Xi Jinping in South Korea later this month.

“There's a very good chance that I travel to Asia before Trump and meet with my Chinese counterpart, Vice Premier He Lifeng,” Bessent said.

The meeting is expected to coincide with the Asia-Pacific Economic Cooperation (APEC) summit and engagements in Malaysia, Japan, and South Korea.

Avoiding full trade escalation

Bessent insisted that Washington does not want to escalate the trade conflict with China, highlighting daily communication between officials from both countries.

“The trade conflict between the two countries has not escalated further due to trust between Trump and Xi,” he said.

Despite China's warning that it is ready to“fight to the end” in a trade war, Bessent stressed that both leaders have an“excellent relationship” and indicated a willingness to resolve tensions through diplomacy.

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