Treasury Secretary Scott Bessent said Wednesday that the United States government plans to “set price floors” across a range of industries to combat China’s economic manipulation.
Price floors are minimum prices set by the federal government and are an economic tool typically used by communist governments. The United States economy has very few examples of price floors, with the minimum wage and agricultural subsidies being two notable exceptions.
Bessent made the remark in an interview about trade and industrial policy with CNBC Wednesday morning, as the administration ups the ante on its trade war with China. The Chinese government has announced plans to tighten its restrictions on the export of rare earth minerals in response to the Trump administration’s plan to increase tariffs on Chinese goods to 100%.