US tariffs to kick in Aug 1, barring trade deals
The rates will "boomerang back" to the sometimes very high levels that 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 agreements, Bessent told CNN.
Bessent confirmed comments by Trump to reporters aboard Air Force One on Friday in which he also cited a new deadline: "Well, I'll probably start them on August 1."
The president told reporters Sunday he had signed about a dozen letters to inform countries of rate hikes, to be sent out on Monday.
"I think we'll have most countries done by July 9, either a letter or a deal," Trump told reporters Sunday, adding that some deals have already been made.
Standing at his side, US Commerce Secretary Howard Lutnick confirmed tariffs would kick in on August 1, "but the President is setting the rates and the deals right now."
The tariffs were part of a broader announcement in April where Trump imposed a 10 percent 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.
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."
Aboard Air Force One on Friday, 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."
Bessent pushed back at CNN host Dana Bash's assertion the administration was using threats rather than negotiations, and denied that 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 European Union 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 Saturday he hoped they could strike a deal this weekend.
Other countries were still expressing unease, however.
Japan's Prime Minister Shigeru Ishiba said Sunday he "won't easily compromise" in trade talks with Washington.
And BRICS leaders of fast-growing economies meeting in Rio de Janeiro raised "serious concerns" that the "indiscriminate" import tariffs were illegal and risked hurting global trade.
When probed about worries that steep levies could feed into broader US inflation, Bessent said there was a difference between "inflation and one-time price adjustments."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
35 minutes ago
- The Sun
Euro zone bond yields rise as U.S. tariff deadline looms
LONDON: Euro zone long-dated bond yields inched higher on Monday as investors turned their attention to the looming U.S. tariff deadline, with officials hinting at a possible delay beyond July 9. Germany's 10-year Bund yields rose 2 basis points to 2.584%, while U.S. 10-year Treasury yields remained steady at 4.3379%. President Donald Trump stated on Sunday that the U.S. is nearing final trade agreements and will announce higher tariff rates by July 9, set to take effect on August 1. This has kept markets on edge, anticipating potential volatility as details on trade policies emerge. German two-year yields, sensitive to interest rate expectations, edged up slightly to 1.82%, hovering near a three-week low. Meanwhile, Italian 10-year yields increased by 2.3 basis points to 3.493%, widening the spread over German Bunds to 90 basis points, according to LSEG data. In the UK, the 10-year gilt yield held steady at 4.56%, still elevated after last week's sharp sell-off triggered by a reversal in planned welfare spending cuts. On a positive note, German industrial production exceeded expectations in May, driven by strong performance in the automotive and energy sectors, as reported by the federal statistics office. Later in the day, European Central Bank policymakers Joachim Nagel and Robert Holzmann are scheduled to speak, potentially offering further insights into monetary policy direction. - Reuters
New Straits Times
2 hours ago
- New Straits Times
Oil falls as OPEC+ hikes August output more than expected
SINGAPORE: Oil prices slipped on Monday after OPEC+ surprised markets by hiking output more than expected in August, while uncertainty over US tariffs and their potential impact on global economic growth weighed on demand expectations. Brent crude futures fell 24 sen, or 0.35 per cent, to US$68.06 a barrel by 0642 GMT, while US West Texas Intermediate crude was at US$66.31, down 69 sen, or 1.03 per cent. The Organisation of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August. "The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue," Tim Evans of Evans Energy said in a note. The August increase is a jump from monthly increases of 411,000 bpd OPEC+ had approved for May, June and July, and 138,000 bpd in April. The decision will bring nearly 80 per cent of the 2.2 million bpd voluntary cuts from eight OPEC producers back into the market, RBC Capital analysts led by Helima Croft said in a note. However, the actual output increase has been smaller than planned so far and most of the supply has been from Saudi Arabia, they added. In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia. Goldman analysts expect OPEC+ to announce a final 550,000 bpd increase for September at the next meeting on August 3. Oil also came under pressure as US officials flagged a delay on when tariffs would begin but failed to provide details on changes to the rates that will be imposed. The US is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates scheduled to take effect on August 1. Trump in April announced a 10 per cent base tariff rate on most countries and higher "reciprocal" rates ranging up to 50 per cent, with an original deadline of this Wednesday. However, Trump also said levies could range in value from "maybe 60 per cent or 70 per cent tariffs to 10 per cent and 20 per cent", further clouding the picture. Investors are worried higher tariff rates could slow economic activity which would reduce demand for oil. "Concerns over Trump's tariffs continue to be the broad theme in the second half of 2025, with dollar weakness the only support for oil for now," said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
New Straits Times
2 hours ago
- New Straits Times
European shares mixed on caution ahead of US tariff deadline
LONDON: European shares were mixed on Monday, with investors alert for any trade-related headlines in the countdown to US President Donald Trump's tariff deadline. The pan-European STOXX 600 index was flat at 541.08 points, as of 0709 GMT. Other major regional indexes were mixed, with Germany's DAX up 0.4 per cent, France's CAC 40 down 0.1 per cent, Spain's IBEX edging 0.1 per cent higher, and the UK's FTSE 100 slipping 0.2 per cent. The US is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, Trump said on Sunday. The new rates are set to take effect from August 1. Trump also threatened an extra 10 per cent tariff on countries aligning themselves with the "anti-American policies" of the BRICS group of developing nations. Both the tariff levels and effective dates have become moving targets as Trump, on Friday, added to the confusion by mentioning that some tariffs could reach up to 70 per cent, levels far higher than the 10 per cent-50 per cent range he announced in April. A White House official said on Friday that US trade talks with the European Union were continuing and there was optimism an agreement could be reached in short order. European energy stocks fell 1.3 per cent, tracking oil prices. Banks were up 0.6 per cent. Capgemini fell 2.8 per cent after the French IT services firm agreed to buy technology outsourcing company WNS for a cash payment of $3.3 billion.
