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Bessent Warns Tariffs Could Still Return the April 2 level after Trump Sees No Extension of the July Deadline
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TMTPOST -- The Trump administration could   resume its higher reciprocal tariffs on trading partners even   if trading partners   are engaging in negotiations in   good faith   when   the 90-day   pause on higher tariffs ends, U.S. Treasury   Secretary   Scott Bessent   warned on Monday.

Credit:China Central Television

Bessent   said in a   Bloomberg interview that he   expects U.S. will make   "a flurry"   of trade   deals   with   trading partners   ahead of the July 9   deadline,   which is when the Trump administration ’ s reciprocal tariffs return to higher levels   from the baseline level 10%.   But   he warned   that "recalcitrant" countries that their tariff levels could soon snap back to   the levels announced   on April 2, a date U.S.   President Donald   Trump proclaimed   "Liberation Day".  

"We have countries that are negotiating in good faith, but they should be aware that if we can't get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won't have to happen," Bessent said.   He   added that any potential extensions   will be Trump ’ s decision.

Bessent   issued   the warning   after   Trump suggested he   would   like to stick to the July 9 deadline, instead of extension.   In an interview with Fox News broadcast on Sunday, Trump said he doesn ’ t   think   he will   need to extend the deadline   and   his administration   would notify   countries that they   have to face   higher   tariffs unless they   strike deals with   the U.S.  

"We ’ ll look at how a country treats us — are they good, are they not so good — some countries we don ’ t care, we ’ ll just send a high number out," said   Trump. He said letters to notify countries about future trade   penalties will   start going out   soon   before the   July   9   deadline.   Letters   would say, "Congratulations, we ’ re allowing you to shop in the United States of America, you ’ re going to pay a 25% tariff, or a 35% or a 50% or 10%,"   said the president.

Bessent and   Trump ’ s   remarks adds appeared more ambiguity   in   the   U.S.   government ’ s stance on   the July   9   deadline.

Bessent in June   became the first   senior Trump official that has indicated some flexibility for the tariff pause when he testified before the House Ways and Means Committee.

Bessent emphasized throughout the hearing   on June 11 that he ’ s focused on negotiations with the 18 US trading partners who account for 90% of the trade and suggests that regional deals are possible with smaller countries.   Questioned about whether the so-called reciprocal tariffs would enter effect when a 90-day pause ends, Bessent responded the Trump administration is   "highly likely"   to delay tariffs for countries involved in good-faith trade talks.

"It is highly likely that those countries - or trading blocs as is the case with the EU - who are negotiating in good faith, we will roll the date forward to continue the good-faith negotiations," Bessent told   House of Representatives. "If someone is not negotiating, then we will not."

"The deadline is not critical," White House press secretary Karoline Leavitt   said in a press briefing.   She told reporters   that   Trump "can simply provide these countries with the deal if they refuse to make us one by the deadline," and   that means the president   can pick   "a reciprocal tariff rate that he believes is advantageous for the United States."  

Bessent   last Friday   suggested   the   July   deadline could be delayed to   September   1, this   year ’ s Labor   Day,   as the   Trump   administration   hopes to wrap up deals with more   than   a dozen countries.   He noted   U.S.   Commerce Secretary Howard Lutnick ’ s comments   on Thursday   that the White House has imminent plans to reach agreements with 10 major trading partners.   "If we can ink 10 or 12 of the important 18 — there are another important 20 relationships — then I think we could have trade wrapped up by Labor Day,"   Bessent said on Fox Business Network.   

Trump on Friday   implied flexibility of the July deadline   while cautioning he ’ s mulling higher tariffs   for smaller countries that have   not reached deals with the U.S. Asked if the mid-July deadline was set in stone, Trump   replied: "We can do whatever we want. We could extend it, we could make it shorter.   I ’ d like to make it shorter. I ’ d like to just sent letters out to everybody, ‘ Congratulations, you ’ re paying 25%. ’ "

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