US nearing key trade deals ahead of tariff deadline: Bessent
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Speaking on CNN's State of the Union, Treasury Secretary Scott Bessent has predicted "several big announcements" in the coming days.
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Treasury Secretary Scott Bessent speaks on April 23, 2025, during the Institute of International Finance Global Outlook Forum in Washington. (AP)
The United States is on the verge of finalizing several major trade agreements just days before a July 9 deadline, when higher tariffs are set to take effect, Treasury Secretary Scott Bessent said Sunday.
Speaking on CNN's State of the Union, Bessent predicted "several big announcements" in the coming days. He noted that the Trump administration is also preparing to notify around 100 smaller trading partners, nations with which the US has limited trade ties, that they will face the previously set April 2 tariff rates unless agreements are reached. Those tariffs had been suspended but are scheduled to resume on July 9.
"President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we're going to see a lot of deals very quickly," Bessent said.
Bessent clarified that August 1 is not a new negotiation deadline but rather a firm date for tariff enforcement. "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 added while speaking to CNN.
He emphasized that the administration’s focus remains on 18 key trading partners, which together account for 95% of the US trade deficit. But progress has been slow. Bessent added there had been a "lot of foot-dragging," urging faster movement from negotiating countries.
Deadline pressure builds
He declined to name which countries are nearing trade deals, saying he did not want to "let them off the hook."
President Donald Trump has repeatedly claimed that India is close to reaching an agreement and has expressed optimism about a potential deal with the European Union, though he’s cast doubt on the chances of one with Japan.
Since taking office, Trump has ignited a global trade war, rattling financial markets and prompting governments worldwide to scramble for economic safeguards, often through rushed trade agreements with the US or other nations.
On April 2, Trump announced a 10% base tariff and additional surcharges for most countries, with some rates as high as 50%. The announcement sent shockwaves through financial markets, leading the president to delay all but the base rate for 90 days to allow time for negotiations. However, those talks have moved more slowly than expected.
That grace period ends July 9. Trump warned on Friday that tariffs could go even higher, possibly up to 70%, with most increases taking effect on August 1.
When asked about the 70% figure, Secretary Bessent pointed back to the original April 2 tariff schedule, which did not include rates that high.
