Bessent mentioned seven price floor areas in a CNBC interview but did not name them.
Price Floors Across a Range of Industries
The discussion of price floors is in relation to the US trade war with China, especially rare earth metals.
However, it’s not just rare earths.
Treasury Secretary Scott Bessent said “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.”
CNBC reports Trump administration will set price floors across range of industries to combat China, Bessent says
“When you are facing a nonmarket economy like China, then you have to exercise industrial policy,” Bessent told Sara Eisen at CNBC’s Invest in America Forum in Washington, D.C.
“So 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,” the Treasury secretary said, without naming specific industries the administration was looking at beyond rare earths.
China last week announced sweeping new restrictions on rare earth exports ahead of an expected meeting between President Xi Jinping and President Donald Trump in South Korea later this month. Trump has threatened to slap China with additional 100% tariffs in response.
The U.S. could take equity stakes in other companies in the wake of Beijing’s rare earth restrictions, Bessent told CNBC.
The Trump administration will not take stakes in nonstrategic industries, Bessent said. “We do have to be very careful not to overreach,” he said.
What’s Strategic?
Please recall Trump labeled movies a national security threat.
With Trump, even the absurd is strategic.
“We have things that are more powerful than the rare earth export controls that the Chinese want to put on,” said Bessent.
Uh… like what? And if so, why back down?
U.S. to Take Control of More Companies to Counter China
The New York Times reports U.S. to Take Control of More Companies to Counter China
The Trump administration is seeking to counter new economic measures from China by exerting more control over American companies in key strategic sectors, Treasury Secretary Scott Bessent said on Wednesday.
The approach marks a new era of industrial policy in the United States, a contrast to how policymakers have traditionally valued free markets and open investment. But as China’s dominance over the production of rare-earth minerals and battery technology grows, President Trump wants to take a page out of Beijing’s economic strategy. By taking more stakes in American companies that specialize in areas deemed critical to national security, the Trump administration aims to exert more control over what they produce. The goal is for the U.S. to become less reliant on China for sensitive technology that it has been using as leverage in trade negotiations.
On Friday, Mr. Trump responded by threatening to put an additional 100 percent tariff on products from China on Nov. 1 and cancel an upcoming meeting with China’s leader, Xi Jinping. After the announcements caused the stock market to plummet, Mr. Trump quickly qualified his statements. He said he might meet Mr. Xi anyway and wrote on social media on Sunday, “Don’t worry about China, it will all be fine!”
The Treasury secretary pointed to China’s announcement last week of new export controls on rare-earth minerals as a reason the United States must exert more state control over corporations. “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,” Mr. Bessent said.
Mr. Bessent said that the Trump administration had identified seven industries that it considered of strategic importance where the United States could seek to exert more government control. He pointed specifically to the defense sector, where in some cases the U.S. government is the largest or only customer of certain companies, and said that the administration could insist that companies spend more money on research and less on stock buybacks.
“I do think our defense companies are woefully behind in terms of deliveries,” Mr. Bessent said.
The United States would use “price floors” and “forward buying” across a “range of industries,” he added, to ensure that China does not dominate other sectors the way it has with the processing and refining of rare earths.
The push for greater government control over the private sector is a policy that he has criticized in the past.
Last year, Mr. Bessent delivered a speech at the Manhattan Institute deriding the Biden administration’s subsidies of strategic sectors such as semiconductors as “central planning.” At a news conference at the Treasury Department on Wednesday, Mr. Bessent scolded China for deploying similar tactics.
“They are a state economy,” Mr. Bessent said. “We are not going to let a group of bureaucrats in Beijing try to manage the global supply chains.”
The countries have also clashed over a U.S. move to impose fees on Chinese-owned ships docking in American ports, a policy U.S. officials say is geared at revitalizing American shipbuilding. Non-Chinese shipping lines must also pay the fees when they send Chinese-built ships to American ports. Those went into effect on Tuesday.
Agreement With Bessent
“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,” Mr. Bessent said.
Q: I totally agree. But what is Trump’s approach?
A: Terrorize allies with tariffs and threats, especially Canada and Mexico.
I propose the US expand trade with allies. Specifically, the US should work out a deal for Canada to produce rare earths and Mexico to process them.
Canada has vast areas of land to mine and Mexico has cheap labor. Instead, Trump has punished allies as much as China.
“Our relationship will never again be what it was,” said Canadian Prime Minister Mark Carney.
Irony of the Day
“They are a state economy,” Bessent said. Note the the direction Trump is taking the US.
Here is a list of US government involvement.
Trump’s Takeover of US Businesses
- The government has a 10% equity stake in Intel (INTC)
- The government has a 15% equity stake in MP Materials (MP)
- The government has a 10% equity stake in Lithium Americas (LAC)
- The government has a 10% equity stake in Trilogy Metals (TMC)
- The government has a “golden share” in US Steel Corporation (USS)
- After the launch of the $TRUMP memecoin, Trump’s wife Melania launched her own meme coin, $Melania on January 19, 2025
- Nvidia (NVDA) agreed to pay 15% of revenues from chip sales to China to the U.S.
- AMD agreed to pay 15% of revenues from chip sales to China to the U.S.
- Trump started a government website for prescriptions called TrumpRx.gov.
- Trump wants Fannie Mae and Freddie Mac to subsidize homebuilders
“We do have to be very careful not to overreach,” said Bessent.
OK, what constitutes “overreach”?
Movies Are Now a National Security Threat
On May 4, 2025 I commented Movies Are Now a National Security Threat, 100 Percent Tariffs Announced
Hooray for Hollywood!
Just when you thought national security threats could not get any stupider, Trump says Hollywood ‘dying’; orders 100% tariff on non-US movies to save Hollywood.
Subsidize Home Builders
Please note Trump and Pulte Now Want Fannie Mae to Subsidize Home Builders
Trump’s economic illiteracy and disrespect of moral hazards have no bounds.
US and Canada Have a New Spat Over Auto Tariffs
On October 12, 2025, I noted US and Canada Have a New Spat Over Auto Tariffs
“He [Canadian Prime Minister Mak Carney] wants to make cars, we want to make cars, and we’re in competition,” Trump said in the Oval Office as he sat next to Carney. “And the advantage we have is, we have this massive market.”
Trump’s Myopic View of Trade
Trump views trade as having a winner and a loser.
But other than coercion or force, both sides believe they benefit from a deal or there is no deal.
The US could be and should be expanding our relationship with Canada and Mexico. Instead, Trump destroyed it.
Meanwhile Bessent says “we have to be sufficient with our allies.”
How about practicing that instead of punishing them?
Trolls: As a result of 9 idiots (or one idiot 9 times), I am thinking of turning off display of thumbs down.
Didn’t three of the idiots/trolls give responses as to why they disagreed with you and presumably downvoted?
Four including myself, but I think downvotes are stupid to begin with since if you’re going to disagree with a written point you should have to make an actual point yourself besides “that’s dumb”.
Then you should require the same of any upvote, yes?
That’s clever!
There are exceptions…
It’s one guy with a VPN lol. He’s done it like 4 times this week.
You can tell it’s a VPN because he’s giving comments on this post exactly 11 thumbs downs every single time.
Let it be. This way, the trolling is easier to spot and therefore, ignored.
What is the problem and why does it matter in the big picture?
I think it is important and useful to be able to see the both up and down votes. An aggregation isn’t useful at all.
It would be even more helpful if the postname was shown with each vote, as Disqus does.
Please give it a little more time, Mike. Maybe the troll will stop after today. I don’t thumbs down comments very often, but turning it off seems a little censor-y. People should be able to boo me (with a thumbs down) if I say anything inappropriate – which I’ve been known to do.
Also this post involves China, so their trolls will jump in on any negative mentions and are the likely culprits. Happens all over the net.
Yes, all the down votes in the net are the Chinamen’s deed!
MAGA
Damn, I know how you feel. Last week I got down voted at twice the rate I got up voted on one comment of mine. I have never been so unpopular. I don’t mind, I just stick to my principles, but only after careful self examination of my comment. I still feel good about the tarriff I paid on an imported item from North of the Border: Canada.
The love of money animates most people in the comments. The love of life, others lives, and the love of the Almighty, are secondary to most people in general, but are well established as being secondary on most economic discussions. People will always root for their own self preservation, even if it is at others expense.
The thumbs down means you’re winning Mish. You’ve triggered the idiots and they don’t have a sensible response but to downvote you. Wear those votes as a badge of honor. What counts is that the idiots took the time to read and respond which again means you’re winning.
I kind of like seeing the downvotes… gives me an indication of how butthurt somebody is.
Mish, you left out the (price floor for) soy beans.
LOL
We’re going to manage global supply chains with bureaucrats in Washington!
US is embarking on industrial policy, introducing a state economy into the USA.
Hmmm. Maybe there are other problem areas in addition to national security that would be better served by considerations beyond so-called “market forces”.
I can hardly believe my ears!
Man, those Chinese are such losers with their state economy and communist management.
Mish, you forgot about the price floor for soy beans.
LOL
We’re going to manage global supply chains with bureaucrats in Washington!
US is embarking on industrial policy, introducing a state economy into the USA.
Hmmm. Maybe there are other problem areas in addition to national security that would be better served by considerations beyond so-called “market forces”.
I can hardly believe my ears!
Man, those Chinese are such losers with their state economy and communist management.
My first thought when reading this was the price fixes that were put in place for the Great Depression 1.0 of 1929. Specifically fixing cotton prices. This resulting in a lot of excess cotton being grown for the farmers benefits only to store the excess in warehouses until it rotted away (America’s Great Depression, Murray N. Rothbard). This extended the depression.
My second thought is, this doesn’t look like a small government that believes we have a free market society. Not even remotely.
My third thought is, Mussolini did this as did that goofball with the funny mustache.
One could say that Trump has socialist tendencies, but I think that assumes that Trump has a particular ideology. I would reject that he has socialist tendencies because over his lifetime, he has never demonstrated that he possessed any core ideologies. What he has consistently shown is that his instinct is always anchored to two things: attention and being seen as strong. That’s it!
And GREED
Bessent actually sounds like he’s panicking.
He ALWAYS sounds like that. Gays lost control of their emotions easily. Saw this with every one I worked with over the years. Often leads to poor decision making. Like a grown man threatening to punch someone in the nose or meet them outside.
Maybe your gay coworker was just on edge from dealing with bigoted morons all the time?
Or maybe not. Maybe it’s caused by their hormone mix?
So if you can’t beat ’em, join ’em? That’s how deep the Republican commitment to capitalism and free markets goes? Now we just emulate communist China’s command economy?
Do Republicans have any constant values whatsoever?
“We have always been at war with Eastasia.” (George Orwell)
So the solution is to fight communism with more communism. Lol. Where is Wisdom Seeker calling Kamala a Marxist now? How do you like your Marxist Trump WS?
Oh well, only 1192 more days of Trump commies.
and you guys wonder why I have an exit strategy….double lol.
If your greatest concern here is that I might show up and disagree with you, you have no idea how much worse it will get… regardless of who won.
Historic forces are at work. Obsessing about personalities or even just focusing on partisan politics misses 95% of the picture.
If you’re young enough to have missed the First Cold War, it’s time to read some history, because this is Cold War 2.0 you’re living in. Or maybe it’s the 1929 with the 1930s right around the corner, WW3 down the road and then Cold War 2.0? Neither scenario is looking good … but denial is not an option. You cannot go back, because the world order you grew up with, is now gone.
P.S. Roosevelt fought Communism with Socialism – and preserved most of the Constitution. Eisenhower fought Communism in Korea, but also with a lot of Federal investments in formerly private/local parts of the economy (e.g. interstate highway system), and had tax rates far higher than today to regain fiscal solvency. Johnson fought Communism by sending the Army to Vietnam, and by bringing fresh opportunity to minorities….
Well, the Democrats today are so far from seeing or supporting the public interest of the citizens that I fear for their future. The Republicans are only slightly less lost. Without sensible statesmen, the nation is doomed to an historic tragedy. Rather than mock Trump – and it is certainly justifiable – I would be praying for him, because there’s no alternative for 3 more years and the Seldon Crisis (look it up) will hit before then.
Interesting thoughts. A little panicked and disjointed but interesting just the same. Maybe there is no Seldon Crisis because Trump is The Mule. I’m familiar with the writings.
This is FDR style facism-lite. Not what I voted for!!
Have to make adjustments, and I suspect Trump will do so next spring as far as what you mentioned. One matter is fiscal management as the goal may to demonstrate no increase in calendar year 2025 deficit compared to 2024, whereas its somewhat a symbolic victory albeit driven in part of tariff revenue.
If I could down-vote myself, I would. It does no allow it. I am in a complete state of confusion.
Why not just do away with all CHINESE JUNK?
Like iPhones and most of the servers in data centers?
Take a walk around your house and see what’s NOT made in China.
Years back my kid had a homework assignment to find things that were make in Japan. Couldn’t find any until I started digging into old boxes to find a 30 year old digital clock (remember those) and a walkman. Everything else was Chinese and that was 20 years ago.
We must be like China to beat it.
We have to destroy capitalism to save it.
Amazing!
Where did the “minimal government is best” Republicans go?
Hmm. You don’t sound like a Portlander. Are you native?
Where did the term limits Republicans go? Where did the Republicans with a spine go?
“In order to save the village it was necessary to destroy it” Sounds familiar.
The Price Nutzies proclaim no “bargain basement” prices for YOU!
>> Instead, Trump has punished allies as much as China.
Why do you think China is not our ally?
Why shouldn’t they be?
Who made them an enemy?
Why should the rest of us through our silence agree with the decision to make them an enemy?
Wow. So much hypocrisy in all the quoted statements from Bessent. The pot is calling the kettle black.
Bessent reportedly said “the administration could insist that companies spend more money on research and less on stock buybacks.”.
Until Regan stock buy backs were illegal. Leave it to Rep to f up the stock market and the economy. Only a Rep can borrow and spend more than a Dem.
Personally I think stock buybacks should only be allowed once outstanding debt has been repurchased. If companies want to return money to shareholders pay a dividend.
I suppose but it would be far better if they used that money for R&D and other forms of long term capital investment. Like making better batteries instead of watching China kick our asses and have nothing in response but whinging.
(Donald) Regan or Reagan?
Ray Gun, who cares.
Comrade Trumpovskovitch really is trying to get to the end as fast as he can huh?
Another tax rise on the peasants, alongside the tariffs. Guaranteed profits for elites.
Guaranteed for sycophantic elites that grovel and kiss the ring, that is. Others will be discarded.
That’s exactly what this is about. If Chinese people would resume working for piecemeal labor in sweatshops rather than build their own brands, NATO oligarchs would return to business as usual.
Eventually people get tired of eating cake.
We are de facto converging to China when it comes to state control of the economy. The difference to China is that we have no idea why we are doing it.
If you believe that, you don’t know China.
Converging, not arrived. Again, a little disjointed but interesting.
Trump knows how to beat China….become China. Can’t beat em join em.
when Harris said she’d end grocery price gouging, Stephen Miller called it communist and said all price controls are communist.
Trump railed that harris wanted to “institute socilist price controls”. This is communist. This is fascist.”
How “Franklin Delano Trump” it is to have price floors. Will we be slaughtering hogs if they can’t be sold for the “right” price?
No, dumping milk.
Don’t price floors suggest a minimum price for the goods and not a maximum price? I think a maximum price would be called a price ceiling and that would cause dumping. In this case they will produce goods well in excess of demand to capture that price floor that is not well below market. Of course the government will be buying all that excess and selling Trump steaks once again.
The relationship with Canada is not destroyed. We are a desparate, emasculated, Vassal State. We will abide by all that the U.S. requires.
Idiot
Wow. Look at those down votes! So few people understand.
The Dude abides.
Good thing Trum wasn’t POTUS during the cold war with USSR . . . We’d have turned into a communist country then.
Meanwhile i bet if Dems want to resurrect universal healthcare, Republicans will still be screaming it’s socialist!
Price floors to prevent deflation?
Up is down, left is right and more is less.
From this angle looks like bessent just took over mish blog….
Interesting from Zerohedge:
Dig the parabolic gold chart. There will be tears.
Yes, tears for those that don’t have any gold or silver in the upcoming (already in progress) hyper-inflation.
The Central Banks will have their say. They prefer inflation to deflation, but they will opt for a temporary deflation and crush everyone to prevent hyperinflation. Look at 1980s gold chart, or gold in 2011 (resolution to Euro debt crisis also crushed gold).
They can always reinstate a deflation by turning the printers back on, but if there’s a hyperinflation they lose everything.
Gold and stocks will top out … This is a really good time to get out of debt by all means necessary.
Debt printing is what is parabolic – for about half century.
Galloping fascism.
Price floors versus wage and price controls. The odds be 50:50 (F. Zappa).
I’ve read about the types of governments who think that setting prices in the marketplace is a good idea. I don’t think Milton Friedman liked any of them at all.
Also, the history books refer to leaders of nations who control pricing in less than flattering terms.
Let’s hear from all the MAGA people defending Trump interfering with free markets.
They’re off being outraged/secretly aroused by trans people.
I would rather have millions and millions of consumers collectively dictate the prices of services and products in our country by paying their hard earned money or not. Instead of a small group of people in our government doing so, it’s what has made the US so attractive for investors over most others. These short sighted policies are quickly changing the long trust and safety investors like myself had found in our economy.
I feel like I’m in bizarro world, where an ostensibly “Republican” president does this sort of thing and ostensibly “conservative” politicians cheer him on. I wonder how we’ll look back on this era in 20 years.
in shame
Contrary to the passing herd of negative votes on the blog today, I’m heartened to see the near unanimous support for free markets in the comments. You guys are alright with me!
what’s bizzaro? it was BS all along, Republicans never had bulwark ideas, it was just the opposite of what Des were doing. GOP was for state’s rights. . . . when the federal government was passing anti-discrimination laws. Now? Trum pis seding troops to blue cities and MAGA loves it. The GOP was for keeping government out of family life and for autonomy and choice when it comes to vaccines. . . except when it comes to abortion.
it’s all BS. Now they basically are for whatever Trump says.
Yep, and just as f-ing crazy as he is.
86/47 he is mentally ill
He wasn’t Republican on all of those Phil Donahue and Oprah shows over the decades, until he saw Hilldog on one side and Jeb! (Please applaud) and Carly Fiorina et al on the other side.
3 years and 3 months to go!
At this pace we’ll never make it.
It’s going to be tough! Maybe the aliens will show up soon?
Reminds me of this movie clip. “Power has driven him mad.”
https://www.youtube.com/watch?v=p_g5Zjnp520
I love National Socialism!
But it is only bad if a Democrat does it
Germany began Universal Healthcare in 1941, and soon thereafter started death panels.
I find this president incompetent and destructive even though he has done good things controlling the southern border and with law and order. If republicans in congress do not reign him in, they will be punished in the 2026 elections as the vote will favor democrat candidates no matter how bad.
The election will not be fair, or free.
You can forget 2026 election or any other election in the US. They will simply not be held
Nope he gerrymandered 5 seats in Texas and more are piling on. Wont matter when there is no choice.
fascists always do SOMETHING good usually relating to cracking down on crime and lawlessness. but it never ends well.
And a blind squirrel every now and then finds a nut.
Hitlerism Fascists were responsible in WW II for approximately 6 million German deaths in WW II.
German fascits were criminal thugs that robbed art, jewelry and property from conquered countries and Jews.
I’ll take an increase in private crime over 6 million deaths and tens of millions of axis and allies deaths in Europe plus sanctioned public corruption, malfeasance, murder, a Holocaust that killed another 6 million, concentration camps, WW II, etc.
If the Supreme Court knocks off the last of the Voting Right Act, the Democrats will not hold the house for a long time.
“…“…. or we have to be sufficient with our allies,” Mr. Bessent said.”
Wait … is there some impression that the US still had allies?
Who??? Nazi Germany (no longer exists)? North Korea? Iran? Russia? Perchance Venezuela?
We are like the blustering dysfunctional alky dad in the family who still holds enough keys to make everyone miserable, and is now stress-testing every relationship boundary every day.
We are going through allies shit through a goose.
Price floors appears to imply they are not happy that tariffs did not flow directly to selling prices. If the tariffs are getting eaten along the way, either by supplier or importer, then the intended incentive to rebuild industries does not exist. Hoo haw.
Sorry to break this to you, but China has cornered the market of the machines used to process rare earths, obviously, and has also restricted their exportation. Free trade is always the right answer.
ooohhh so clever
price floors required because China will dump rare earths on world markets to squeeze the puny US rare earth production pricing
Not sure why they think China would squander a decade’s worth of noose on the world’s neck to beat up on a production that is literally still in the ground
gee, if only we had a managed economy….
The company that the US is buying into in Alaska for $50 mil has only 5 workers–so smart–who is whose buddy?
and hey, Bessent is drumming up another 20 billion for Milei because the great Argentinian austerity experiment must not fail!
This is 3rd world madness with 1st world leeches
I think it may be opposite – China buys up RE on the open market using ever worthless dollars and squeeze everyone/anyone they want. A country can’t just re-source rare earths.
sarcasm
Beware! Pure “genius” at work.
Yes. It’s never been done before. Nobody thought it was possible.
Amazing isn’t it. Never thought I would see the day when USG take a equity stake in private companies.
So what’s the difference between USA & PRC?
If any other President apart from this one would have tried this trick they would have been impeached so fast that it would make your head spin.
The PRC knows about long term planning and the US don’t.
It’s difficult to have long-term economic planning in a political system where the politicians and therefore, potentially government policy, change every 2, 4 or 6 years!
This is why an AI Overlord is going to be the fix that the world needs.
Why would China bots vote this down?
China bots always vote down!