U.S. tariffs will return to ‘Liberation Day’ levels on Aug. 1, if no trade deals are reached by then, Bessent says
US tariffs will kick in on August 1 if trading partners from Taiwan to the European Union do not strike deals with Washington, Treasury Secretary Scott Bessent said Sunday.
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, 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. Well, that’s pretty early. Right?”
The president said he had signed 12 letters to be sent out, likely on Monday.
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.”
As his July 9 deadline approaches, Trump has repeatedly said he plans to inform countries of US tariff rates by sending them letters.
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 meeting in Rio de Janeiro are expected to decry the tariffs Sunday, saying they are illegal and risk hurting the global economy.
This story was originally featured on Fortune.com