Trump’s Treasury Secretary Says US Will Impose ‘Price Floors’ To Combat China Manipulating Markets

Treasury Secretary Scott Bessent told CNBC on Wednesday that the United States will be introducing “price floors” in different markets to combat China.

Bessent joined Sara Eisen at the CNBC Invest in America Forum in Washington, D.C. where he argued that the current administration taking stakes in private companies is a way to combat global market manipulation, especially from China. Bessent said they have identified seven “strategic” markets for them to be more actively involved in.

“When you are facing a nonmarket economy like China, then you have to exercise industrial policy,” Bessent said.

The Treasury Secretary explained that China has put rare earth mineral companies out of business by massively dropping their own prices.

“We’re going to set price floors and the forward buying to make sure that this doesn’t happen again, and we’re going to do it across a range of industries,” he said.

China’s Ministry of Commerce announced this month that the country will now allow the export of rare Earth minerals to foreign militaries. The new restrictions require foreign entities to obtain “export licenses.” President Donald Trump responded by threatening the country with 100% tariffs.

Trump called it an “extraordinarily aggressive position” and a “moral disgrace.”

“Don’t worry about China, it will all be fine!” Trump wrote on Truth Social after his threat. “Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”

Bessent told CNBC the new restrictions could lead to the government expanding its stakes in certain markets.

“I wouldn’t be surprised. When we get an announcement like this week with China on the rare earths, you realize we have to be self-sufficient, or we have to be sufficient with our allies,” he said.

Watch above via CNBC.