US Treasury Sec. warns of steep tariff increases post-July 9 deadline
3 Min Read
Scott Bessent warns countries may face a sharp US tariff hike on July 9, even amid active trade talks, depending on Trump’s decision.
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US Treasury Secretary Scott Bessent speaks to reporters following a Senate Republican luncheon in the US Capitol on June 27, 2025, in Washington, DC. (GETTY IMAGES NORTH AMERICA/Getty Images via AFP)
Countries engaged in trade negotiations could still face a significant US tariff hike on July 9, cautioned US Treasury Secretary Scott Bessent on Monday.
Speaking to Bloomberg Television, Bessent pointed out that while discussions are ongoing, the possibility of reverting to previously announced higher tariffs remains very real.
July 9 deadline could trigger higher rates
Under the current timeline, 10% US tariff rates on imports from numerous countries are set to rise to between 11% and 50%, reflecting the rates announced by President Donald Trump on April 2.
Bessent noted that the return to these higher levels could happen even for countries negotiating in good faith.
"We have countries that are negotiating in good faith, but they should be aware that if we can't get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won't have to happen," he mentioned.
The US Treasury Secretary said he expects a "flurry" of trade deals in the lead-up to the July 9 tariff deadline, as countries scramble to avoid steep import tariff increases.
Final decision rests with Trump
Though Bessent had previously raised the possibility of negotiating deadline extensions, he clarified that any decision to delay or alter the tariff hike ultimately lies with Trump.
The looming July 9 tariff deadline and the uncertainty surrounding potential exemptions or extensions continue to place pressure on trade partners to finalize deals and avoid the US tariff hike.
White House says July deadline for higher tariffs may be extended
On Thursday, White House Press Secretary Karoline Leavitt revealed that the Trump administration may push back a July 9 deadline for higher tariffs on imports from several countries.
While Trump has already implemented a broad 10% tariff on most US trading partners this year, he has temporarily paused more aggressive tariffs on dozens of economies to allow room for negotiations.
When asked whether the deadline could be extended, Leavitt responded, "Perhaps it could be extended, but that's a decision for the president to make," adding that the July 9 date is “not critical".
"The president can simply provide these countries with a deal if they refuse to make us one by the deadline,” she said, adding that this gives him the ability to impose a reciprocal tariff rate he believes benefits the country.
