US tariffs will return to “liberation date” level on August 1st if trade transactions are not reached by then, Bessent says
US tariffs will begin on August 1 if Taiwan’s trading partners to the European Union do not attack the deal with Washington, the Scott Bescent Treasury Department said on Sunday.
The rate “backs” the “boomerang” to occasionally very high levels announced by President Donald Trump on April 2 – will suspend taxation to allow trade negotiations and set deadlines for the July 9 agreement, Bescent told CNN.
Bescent confirmed Trump’s comments on a reporter aboard Air Force 1 on Friday. He also cited a new deadline. “Well, I’ll probably start on August 1st.
The president said he signed 12 letters to be sent probably on Monday.
The tariffs were part of a broader announcement in April, with Trump putting a 10% obligation on products from almost all trading partners, and planning to tighten these fees within days.
However, he quickly suspended the hike until July 9th, allowing trade consultations to take place.
Countries have called for attacks on transactions that help to circumvent these obligations.
So far, the Trump administration has announced deals with Britain and Vietnam, but Washington and Beijing have agreed to temporarily lower the surprisingly high collections for each other’s products.
Bescent said the administration was “close to some deals.”
“We expect to see some big announcements in the coming days,” he said.
However, he didn’t say which country he was referring to, adding, “I don’t want them off the hook.”
As the July 9 deadline approaches, Trump repeatedly said he plans to notify the country of US tariff rates by sending letters to them.
On boarding Air Force 1 on Friday, Trump said it was much easier than “sitting and working 15 different things.”
Bessent has been pushed back to the claims of CNN host Dana Bash, denying that the administration was using more threats than negotiations, and denying that Trump has set a new deadline on the August 1st date.
“That’s not a new deadline. We say it’s when this is happening. If you want to speed things up, you have it. If you want to go back to the old rate, that’s your choice,” he said.
He said the playbook is about applying “maximum pressure,” citing the European Union as an example, and after a slow start, he has “made a very good progress.”
EU and US negotiators are in talks over the weekend, and the French finance minister said on Saturday that he hopes he can hit the deal this weekend.
However, other countries still expressed concern.
The Japanese Prime Minister said on Sunday that he would not “easily compromise” during trade talks with Washington.
And meetings with BRICS leaders in Rio de Janeiro are expected to condemn tariffs on Sunday, saying they are illegal and risk hurting the global economy.