The tariffs are lit and will go live on August 1 unless Taiwanese-to-European Union traders strike deals with Washington first, Treasury Secretary Scott Bessent said Sunday morning on CNN.
Should they fail to act within that moment, the rates will rebound back to the rather high levels which President Donald Trump had declared on April 2. Bessent told CNN that they are basically returning to Trump original blueprint, but this time within his July 9 deadline.
Trump himself verified it all himself in Air Force One, where he said that he was likely to “start them on August 1. Well, that is mighty young. Right?” the reporters who flew with them Friday answered. He further added he has signed 12 letters that could fall on Monday as a way of informing trading partners to expect interest rate hikes.
In April, Trump had imposed a 10 percent tariff on imports of nearly every country with which it trades-and threatened the imposition of an even higher levy on many of them in the future. And on July 9 he stopped everything to allow talks to brew.
A number of nations are in a sprint to avoid those high duties.
Washington has so far announced a deal with the United Kingdom and Vietnam and signed a truce with Beijing that reduced some of the extremely high tariffs both sides were throwing back and forth at each other.
Bessent has teased that even larger news was on the horizon, as he told CNN that he is just “on the way to brokering several deals.”
He added: “I want to expect some major announcements within the next couple of days.” He would not state what counties he was referring to, joking: “I did not want to give them easy way out.”
As the date, July 9 approaches, Trump continues to mention that he would enlighten everyone through letters.
On Air Force One Friday, he told reporters, “A lot easier to send them a letter than to sit down and work 15 different things… this is what you have to pay, if you want to do business (with) the United States.”
Bessent countered CNN’s Dana Bash when she pressed regarding the threat of tariffs as opposed to a real negotiation: “It is not a new deadline.” It is at this time, that it is happening. Rush it if that is what you want to do. It is your decision, but, to revert to the old rate, is your decision.”
He also indicated that the idea is to exert maximum pressure against such venues as the European Union which he says is making very good progress following a slow beginning. EU and US negotiators continue to meet this weekend, with France even saying on Saturday that it hopes they can clinch a deal then.
Not all however, are afloat.
Prime Minister Shigeru Ishiba of Japan said on Sunday that he will not compromise easily in negotiations of trade with Washington.
The tariffs are going to be denounced by BRICS leaders gathered in Rio de Janeiro on Sunday calling them illegal and dangerous to the world economy.
Bottom-line: tick-tock, Trump is sticking to his promise to send nations letters, and tariffs seem to be coming August 1 -unless a surprise deal miraculously appears.
