Trump Tariffs: US Treasury Secretary Scott Bessent warned that countries failing to finalise trade deals with the US will see tariffs snap back to April 2 levels starting August 1. “If you don’t move things along, then on August 1 you will boomerang back,” he said.

Dismissing the idea of a new deadline, Bessent emphasised the administration’s strategy of “maximum pressure.” He noted that many countries hadn’t even contacted the US, saying, “We have the leverage in this situation.” He also confirmed that upcoming letters would lock in tariff rates for nearly 100 nations within days, despite some deals being only “frameworks.”

Bessent on Monday signalled a flurry of imminent trade-related developments, stating that the Trump administration will announce “several” key trade decisions within the next 48 hours. His comments, made during an appearance on CNBC’s Squawk Box, come amid rising uncertainty about shifting tariff deadlines and ongoing negotiations with multiple countries.

Countries negotiating Trump tariffs

Bessent confirmed that US allies and trading partners have been scrambling to finalise trade deals before the looming July 9 deadline, when high tariffs on dozens of nations are scheduled to take effect. However, he also revealed that the administration has decided to delay the actual collection of country-specific tariff rates until August 1.

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“We’ve had a lot of people change their tune in terms of negotiations,” Bessent said. “My mailbox was full last night with a lot of new offers, a lot of new proposals. It’s going to be a busy couple of days.”

President Trump echoed that sentiment in a Truth Social post on Sunday night, promising that trade “Letters, and/or Deals” would begin rolling out starting Monday at noon.

Bessent emphasised that the letters the administration plans to send to trade partners will be “pretty standard.” Each will thank the country for trading with the US while outlining new tariff rates unless the recipient wishes to renegotiate.

“It’s just, ‘Thank you for wanting to trade with the United States of America. We welcome you as a trading partner. And here’s the rate, unless you want to come back and try to negotiate,’” he said.

As of July 7, Trump has issued tariff letters to 14 countries, warning that new tariffs will take effect from August 1 if trade deals are not reached. The countries receiving these letters include Japan, South Korea, Indonesia, Bangladesh, Thailand, Cambodia, Serbia, Bosnia and Herzegovina, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, and Tunisia. 

Tariff rates vary, with Myanmar and Laos facing the highest at 40%, while Japan, South Korea, Tunisia, and Kazakhstan have 25% tariffs. Trump’s letters warn that if these countries raise tariffs against the US, the US will increase its tariffs accordingly. Additional letters to other countries are expected soon.

Trump on Tuesday said, “”We have made a deal with United Kingdom; we have made a deal with China. We are close to making a deal with India,” says US President Donald Trump.

What Bessent said about Trump’s tax reform and trade strategy?

Bessent also used his CNBC appearance to defend the administration’s economic policy, highlighting the permanence of the Tax Cuts and Jobs Act and championing policies like 100% expensing for factory and agricultural investments.

“We don’t have a tax collection problem; we have a spending problem,” he said. “The pro-growth policies of the Trump administration will get us out of the mess we inherited from the previous administration.”

Bessent added, “I’m not sure where all these deficit hawks were when Team Biden was blowing out the deficit!” despite Trump himself overseeing a record $3.1 trillion deficit in 2020.

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Bessent on leading the Fed

Bessent once again declined to rule out replacing Jerome Powell as Federal Reserve Chair next year. “I will do what the President wants,” he said, while reaffirming his current focus on Treasury duties. “We’ve had a busy five, six months out of the box, and we’ve got a lot to do.”