In a significant development regarding U.S. trade policy, Treasury Secretary Scott Bessent announced on Sunday that the United States plans to reinstate steep country-by-country tariff rates starting on August 1. This decision comes just weeks after a temporary pause on these tariffs, which is set to expire soon.
Bessent made these remarks during an interview on CNN’s “State of the Union,” where he indicated that President Donald Trump would be sending letters to trade partners. He warned that if nations do not take action to meet the U.S. demands, they would face a return to the tariff levels established on April 2.
“President Trump is going to be sending letters to some of our trading partners saying that if you don’t move things along, then on Aug. 1, you will boomerang back to your April 2 tariff level,” Bessent stated.
Originally, President Trump had set a strict 90-day deadline for countries to renegotiate the high tariff rates he announced in his April 2 “Liberation Day” speech. After pausing those rates shortly after, a new 90-day negotiation period was initiated.
This new deadline, however, is set to expire on Wednesday, and there has been some confusion over its implications. When asked about the clarity surrounding this timeline, Bessent insisted that there is no ambiguity: “It’s not a new deadline. We are saying this is when it’s happening.”
He emphasized that countries now have the option to expedite negotiations to avoid reverting to the much higher tariffs from April.
Trump himself mentioned the August 1 timeline during a press briefing, which raised questions about whether the previously established July 9 deadline is still in effect. When approached for clarification regarding this matter, a White House spokesperson refrained from commenting, leaving uncertainty in the air.
As the administration navigates these details, it appears that President Trump’s stance on the July 9 deadline has been shifting. At the end of June, he remarked, “We can extend it, we can shorten it,” only to affirm days later that he was not contemplating an extension.
In a late Friday statement, President Trump reaffirmed the August 1 deadline, further consolidating the focus on that date for the resumption of tariffs. He asserted, “They’ll start to pay on Aug. 1,” implying that significant revenue from these tariffs would begin flowing into the U.S. economy that day.
In detailing the range of tariff rates, Trump indicated that they would vary significantly, with some tariffs potentially hitting upwards of 60% or 70%, while others could be as low as 10% or 20%. He stated, “The money will start to come into the United States on Aug. 1, OK, in pretty much all cases.”
The impact of these tariffs is noteworthy, particularly because they are ultimately paid by importers. This creates a ripple effect where some of the additional costs can be passed on to consumers in the U.S.
Bessent also pointed out that many nations have not reached out to U.S. officials about potential negotiations, a statement that highlights the lack of engagement from international counterparts.
The White House had previously expressed confidence that many countries would step forward to negotiate deals. Back in April, White House trade adviser Peter Navarro suggested that “we’ve got 90 deals in 90 days possibly pending here.” Furthermore, President Trump had indicated an optimistic view regarding countries’ willingness to negotiate, claiming they were eager to reach agreements.
As anticipation builds over the impending tariffs, the renewed uncertainty surrounding trade policies may contribute to volatility in the markets. Following Trump’s announcement of the country letters last Friday, stock futures experienced declines, and the market has enjoyed recent highs partly due to the lull in tariff-related news.
Currently, the U.S. has already imposed higher import duties on various products, including autos, auto parts, steel, aluminum, and goods from both China and Vietnam. The impending tariffs set to resume in August are expected to further intensify the ongoing trade tensions as countries scramble to respond to U.S. demands.
image source from：nbcnews
