Scott Bessent, the U.S. Treasury Secretary, is urging Americans to change their tax withholdings. He believes this could enhance their financial situation amid ongoing trade tensions with China.
Bessent stated, “You will be able to keep more of your money this calendar year.” He emphasized that adjusting withholdings could lead to an automatic real wage increase.
The average tax refund for Americans is currently $3,275 as of April 17, 2026. This reflects an 11% increase from last year’s average refund. The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, introduced new tax deductions that may influence these figures.
Bessent recently held a video call with Chinese Vice Premier He Lifeng regarding trade issues. The discussion was described as candid, in-depth, and constructive.
Amid these economic challenges, Bessent encourages Americans to invest in financial literacy. He warns against easy-money traps that could undermine financial stability.
The strained trade relationship between the U.S. and China continues to prompt discussions among officials. However, no specific outcomes from these talks have been confirmed yet.