U.S. tariff negotiations are the result of calls from other countries not sliding financial markets and China's escalation is a big mistake, U.S. Treasury Secretary Scott Bessent said Tuesday.

"I think it was a big mistake, this Chinese escalation," Bessent said in an interview with CNBC. "We are the deficit country. So what do we lose by the Chinese raising tariffs on us? We export one fifth to them of what they export to us. So that is a losing hand for them."

President Donald Trump will be personally involved in trade negotiations, Bessent said.

"Everything is on the table," Bessent said when asked whether the European Union needed to lower non-tariff barriers including value-added taxes.

The United States will see what its trading partners offer, he said, citing an energy deal in Alaska that Japan and South Korea have expressed interest in financing.

"So that could be an alternative for them to come forward with that, because not only would that provide a lot of American jobs, but it would narrow the trade deficit," Bessent said.