Tariffs will revert to April 2 rates if trade deals aren’t reached by Aug. 1: Bessent
President Donald Trump and Treasury Secretary Scott Bessent both said that letters will be sent to countries the week of Monday, July 7, ahead of the end of the administration’s 90-day tariff pause. Bessent, during an appearance on CNN’s “State of the Union” on Sunday, July 6, said the letters to the United States’ trade partners will say that ” if you don’t move things along, then on Aug. 1, you will boomerang back to your April 2 tariff level.”
The letters, Bessent said, will be sent to small countries where “we don’t have much trade,” and that are largely already at the baseline 10% rate.
Back in April, Trump announced a three-month pause on the full effect of his tariffs for certain countries, excluding China. This pause was initially going to end July 9.
When CNN anchor Dana Bash asked Bessent about Aug. 1, saying that date is “basically a new deadline,” Bessent responded that it isn’t. “We are saying this is when it’s happening,” Bessent said. “If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice.”
Trump, speaking to reporters on Sunday, said the administration will send letters out Monday regarding the trade deals.
“Could be 12, maybe 15… and they’ll be going out on Monday, some will be going out on Tuesday, Wednesday, we’ve made deals also,” he said in New Jersey, adding, “We’ll have most countries done by July 9 — either a letter or a deal.”
Other trade deals being used as ‘guidelines’
Deals have been made with the United Kingdom, China and Vietnam. Deals like these are serving as “guidelines for what might happen” with other countries, White House National Economic Council Director Kevin Hassett said on CBS News’ “Face the Nation.”
“There’s going to be quite a bit of news this week, and I think the headline of the news is that there are going to be deals that are finalized,” Hassett said.
U.S. trade representative Jamieson Greer has negotiated a “whole number” of deals with other countries, Hassett added, and a deal could happen “at the last minute.”
“Until we see everything that plays out, I think that we need to just hold our fire and watch for the news this week,” he said.
When it comes to July 9, Hassett said, “there are deadlines, and there are things that are close, and so maybe things will push back past the deadline, or maybe they won’t.”
Hassett added, “In the end, the president’s going to make that judgment.”
Ella Rae Greene, Editor In Chief
