Donald Trump tariff deadline: New US tariffs to take effect from August 1 if no deals struck, says Treasury Secretary Scott Bessent
The United States will reinstate tariffs on imports from key trading partners—including Taiwan and the European Union—starting August 1 if bilateral trade deals are not reached, Treasury Secretary Scott Bessent said on Sunday.
Bessent, speaking to CNN, said the suspended levies—originally announced by President Donald Trump on April 2—would 'boomerang back' to their previously high levels unless agreements are finalised by July 9. The administration had earlier paused the hike to allow negotiations with affected countries, Bessent said, AFP reported.
The Treasury Secretary's remarks reaffirm Trump's comments made aboard Air Force One on Friday.
'Well, I'll probably start them on August 1. Well, that's pretty early. Right?' Trump had said, adding that he had signed 12 letters to notify countries of the upcoming tariff regime, likely to be sent Monday.
The April tariff plan involved a 10% duty on most imports, with steeper hikes for select nations. The rates were paused until July 9 to allow for trade talks, which are now nearing their conclusion. Countries have been rushing to secure deals to avoid the elevated tariffs.
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So far, the Trump administration has finalised agreements with the United Kingdom and Vietnam. Meanwhile, the US and China have mutually agreed to temporarily reduce steep duties on each other's goods, AFP stated.
Bessent said Washington was 'close to several deals' and that 'several big announcements' were likely in the next few days. However, he declined to name specific countries. 'I don't want to let them off the hook,' he said.
As the July 9 deadline approaches, Trump has doubled down on his plan to issue formal notifications instead of extended negotiations. 'This is what you have to pay if you want to do business with the United States,' he reportedly said on Friday.
Bessent also dismissed claims that the administration was leveraging threats instead of diplomacy, telling CNN's Dana Bash that August 1 was not a new deadline. '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 added that the Trump strategy was to apply 'maximum pressure,' pointing to the European Union, which he said was 'making very good progress' after initially lagging behind in negotiations.
EU and US trade negotiators are continuing talks through the weekend. France's finance minister said on Saturday that he hoped a deal could be reached before Monday.
However, not all countries appear ready to yield. Japan's Prime Minister Shigeru Ishiba said Sunday that Tokyo 'won't easily compromise' in its trade negotiations with the US.
Leaders of BRICS nations, who are meeting in Rio de Janeiro, are also expected to voice strong opposition to the US tariff strategy, warning that the measures are 'illegal' and could hurt the global economy.
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