WASHINGTON — The United States will implement a sweeping set of new tariffs starting August 1, unless countries including Taiwan, Japan, and the European Union reach trade agreements with Washington, Treasury Secretary Scott Bessent confirmed Sunday.
The tariffs stem from a broader announcement made by former President Donald Trump in April, when he imposed a 10% duty on imports from nearly all U.S. trading partners. That round of tariffs was quickly paused to allow time for negotiations, with a July 9 deadline set for reaching agreements.
Speaking to CNN, Bessent confirmed that countries failing to finalize deals by the deadline will face the full brunt of the original tariffs, which he described as likely to “boomerang back” to the elevated rates first proposed.
“This is when it’s happening,” Bessent said. “If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice.”
On Friday aboard Air Force One, Trump told reporters he had signed 12 formal notices informing countries of the pending rate hikes. The letters were expected to be sent Monday.
So far, the United Kingdom and Vietnam have reached agreements to avoid the new duties. Meanwhile, Washington and Beijing have agreed to a temporary easing of tariffs on each other’s goods. Bessent hinted that more announcements were imminent.
“I would expect to see several big announcements over the next couple of days,” he said, though he declined to name specific countries.
While Trump’s administration has framed the move as a leverage tactic in trade talks, critics argue it amounts to economic coercion. Bessent rejected that characterization, emphasizing the strategy of applying “maximum pressure” to accelerate negotiations.
The European Union is reportedly in intensive talks with U.S. trade officials this weekend. France’s finance minister said on Saturday he was optimistic a deal could be reached soon. However, other nations, such as Japan, have expressed reluctance to yield. Japanese Prime Minister Shigeru Ishiba said Sunday that Tokyo would “not easily compromise.”
Meanwhile, BRICS leaders, meeting in Rio de Janeiro, condemned the looming tariffs, calling them “indiscriminate” and a threat to global trade.
Addressing concerns over the potential inflationary effects of the tariffs, Bessent dismissed fears of broader economic harm, claiming there’s a distinction between temporary price hikes and actual inflation.
“Inflation is a generalised monetary phenomenon. We’re not going to see that,” he said. “And thus far, we haven’t even seen the one-time price adjustments.”
Unless major trade deals are secured quickly, August 1 will mark a significant escalation in U.S. trade policy, with ripple effects expected across global markets.
