Tariffs will kick in on August 1 barring trade deals: US Treasury Secretary

Straits Times

6 hours ago

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Many of the US' trade partners have begun negotiations in a bid to avoid the elevated duties.
WASHINGTON - US tariffs will kick in on August 1 if trading partners from Taiwan to the European Union (EU) do not strike deals with Washington, Treasury Secretary Scott Bessent said on July 6.
The rates will 'boomerang back' to the sometimes very high levels which President Donald Trump had announced on April 2 – before he suspended the levies to allow for trade talks and set a July 9 deadline for agreement, Mr Bessent told CNN.
He confirmed comments by Mr Trump to reporters aboard Air Force One on July 4 in which he also cited a new deadline: 'Well, I'll probably start them on August 1. Well, that's pretty early. Right?'
The president said he had
signed 12 letters to be sent out , likely on July 7.
The tariffs were part of a
broader announcement in April where Mr Trump imposed a 10 per cent duty on goods from almost all trading partners, with a plan to step up these rates for a select group within days.
But he swiftly
paused the hikes until July 9 , allowing for trade talks to take place.
Countries have been pushing to strike deals that would help them avoid these elevated duties.
So far, the Trump administration has unveiled deals with the United Kingdom and Vietnam, while Washington and Beijing agreed to temporarily lower staggeringly high levies on each other's products.
Mr Bessent said the administration was 'close to several deals.'
'I would expect to see several big announcements over the next couple of days,' he said.
But he would not say which countries he was referring to, adding: 'I don't want to let them off the hook.'
As his July 9 deadline approaches, Mr Trump has repeatedly said he plans to inform countries of US tariff rates by sending them letters.
Aboard Air Force One on July 4, Trump said sending notices would be much easier than 'sitting down and working 15 different things... this is what you have to pay, if you want to do business (with) the United States.'
Mr Bessent pushed back at CNN host Dana Bash's assertion the administration was using threats rather than negotiations, and denied that Mr Trump was setting a new deadline with the August 1 date.
'It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice,' he said.
He said the playbook was to apply 'maximum pressure' and cited the EU as an example, saying they are 'making very good progress' after a slow start.
EU and US negotiators are holding talks over the weekend, and France's finance minister said on July 5 that he hoped they could strike a deal this weekend.
Other countries were still expressing unease, however.
Japan's Prime Minister Shigeru Ishiba said on July 6
he 'won't easily compromise' in trade talks with Washington.
And Brics leaders meeting in Rio de Janeiro are
expected to decry the tariffs on July 6, saying they are illegal and risk hurting the global economy. AFP