Trump Administration eyes September deadline to finalise major trade agreement, says Bessent

West Australian

7 hours ago

Trade deals between US President Donald Trump's administration and other countries could be done by the September 1 Labor Day holiday, US Treasury Secretary Scott Bessent says.
Mr Bessent on Friday cited talks with 18 main United States trading partners and new revisions to a deal with China aimed at expediting rare earths shipments.
The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks.
'So we have countries approaching us with very good deals,' Mr Bessent said on Fox Business Network.
'We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day,' Mr Bessent said.
He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or have tariffs spike higher, but has previously said that countries negotiating in good faith could get deals.
Mr Trump told reporters at the White House on Friday that he could extend the tariff deadline or 'make it shorter,' adding that within the next week and a half, he would notify countries of their tariff rates.
'I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent' tariffs, Mr Trump said in an apparent joke.
Mr Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva.
As part of its retaliation against new US tariffs, China suspended exports of a wide range of critical minerals and magnets, upending supply chains central to car makers, aerospace manufacturers, semiconductor companies and military contractors around the world.
During US-China talks in May in Geneva, China committed to removing the measures imposed since April 2 but those critical materials were not moving as fast as agreed, Mr Bessent said, so the US put countermeasures in place.
'I am confident now that we - as agreed, the magnets will flow,' Mr Bessent said, adding that these materials would go to US firms that had received them previously on a regular basis.
He did not disclose details of the latest agreement, which Trump administration officials said was reached earlier this week.
Efforts to resolve the dispute included a phone call between Mr Trump and Chinese President Xi Jinping which led to teams from both sides meeting again in London, as negotiators try to end a trade war between the world's biggest economies.
China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus.
It said China will approve export applications of controlled items in accordance with the law.
It did not mention rare earths.
China has dual-use restrictions in place on rare earths which it takes 'very seriously' and has been vetting buyers to ensure that materials are not diverted for US military uses, according to an industry source.
This has slowed down the licensing process.
Indian government sources told Reuters that a trade delegation from New Delhi was back in Washington DC on Friday aiming to sew up a limited US trade deal ahead of the July 9 deadline.
Trump administration officials frequently count India among countries with which trade talks are at an advanced stage, along with Japan.
But early optimism about a simple deal to reduce India's high tariffs has hit roadblocks over disagreements on US import duties for car parts, steel and farm goods, Indian officials with direct knowledge said.
Mr Trump said that his administration was looking to get a 'full trade barrier dropping' deal with India.
'I'm not sure that that's going to happen but as of this moment, we've agreed to that - go into India and trade,' Mr Trump said.