US warns trading partners: Strike deals or face tariffs by August 1
The rates will "boomerang back" to the sometimes very high levels which President Donald Trump had announced on April 2 – before he suspended the levies to allow for trade talks and set a July 9 deadline for agreement, Bessent told CNN.
Bessent confirmed comments by Trump to reporters aboard Air Force One on Friday in which he also cited a new deadline: "Well, I'll probably start them on August 1. Well, that's pretty early. Right?"
The president said he had signed 12 letters to be sent out, likely on Monday.
The tariffs were part of a broader announcement in April where Trump imposed a 10 per cent duty on goods from almost all trading partners, with a plan to step up these rates for a select group within days.
But he swiftly paused the hikes until July 9, allowing for trade talks to take place.
Countries have been pushing to strike deals that would help them avoid these elevated duties.
So far, the Trump administration has unveiled deals with the United Kingdom and Vietnam, while Washington and Beijing agreed to temporarily lower staggeringly high levies on each other's products.
Bessent said the administration was "close to several deals."
"I would expect to see several big announcements over the next couple of days," he said.
But he would not say which countries he was referring to, adding: "I don't want to let them off the hook."
As his July 9 deadline approaches, Trump has repeatedly said he plans to inform countries of US tariff rates by sending them letters.
Aboard Air Force One on Friday, Trump said sending notices would be much easier than "sitting down and working 15 different things... this is what you have to pay, if you want to do business (with) the United States."
Bessent pushed back at CNN host Dana Bash's assertion the administration was using threats rather than negotiations, and denied that Trump was setting a new deadline with the August 1 date.
"It's not a new deadline. 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 said.
He said the playbook was to apply "maximum pressure" and cited the European Union as an example, saying they are "making very good progress" after a slow start.
EU and US negotiators are holding talks over the weekend, and France's finance minister said Saturday he hoped they could strike a deal this weekend.
Other countries were still expressing unease, however.
Japan's Prime Minister Shigeru Ishiba said Sunday he "won't easily compromise" in trade talks with Washington.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
18 minutes ago
- New Straits Times
Trump says to send first tariff letters on Monday
WASHINGTON: US President Donald Trump announced he would send the first tariff letters to various countries on Monday, days before his deadline for trading partners to reach a deal expires. Trump said on Sunday that he will send a first batch of up to 15 letters, warning that US levies on imports will snap back to the high levels he set in April if countries fail to make agreements. But Treasury Secretary Scott Bessent said that the tariffs would not "boomerang" back until Aug 1 – giving some extra breathing space for dealmaking on a subject that has injected uncertainty into global markets. "I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th," Trump said on his Truth Social network. In a later post, he threatened a further 10 per cent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "anti-Americanism" after they slammed his tariffs at a summit on Sunday. Trump had announced sweeping tariffs on April 2 – which he called "Liberation Day" – imposing a 10 per cent duty on imports from almost all trading partners. Some countries, including some within the European Union, were slated to have far higher rates as well. As markets plunged Trump paused the tariffs for 90 days to allow for talks – a deadline which expires on Wednesday. But so far there have been limited results, with Washington unveiling deals only with Britain and Vietnam, while agreeing with China to temporarily lower staggeringly high levies on each other's products. Trump told reporters as he boarded Air Force One on Sunday that it "could be 12, could be 15" letters that he would send on Monday. "I think we'll have most countries done by July 9, either a letter or a deal," Trump said, adding that some deals had been made already. Standing at his side, US Commerce Secretary Howard Lutnick confirmed tariffs would kick in on Aug 1 but denied that it was a way of delaying the deadline. "The President is setting the rates and the deals right now." Bessent also denied that Trump was setting a new deadline with the Aug 1 date. "It's not a new deadline. 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 said. Bessent added that the playbook was to apply "maximum pressure" and cited the European Union as an example, saying they are "making very good progress" after a slow start. Earlier he hinted at "several big announcements" on deals in the coming days but would not say with which countries. EU and US negotiators are holding talks over the weekend, and France's finance minister said Saturday he hoped they could strike a deal as well. Other countries were still expressing unease, however. Japan's Prime Minister Shigeru Ishiba said Sunday he "won't easily compromise" in trade talks with Washington. BRICS leaders of fast-growing economies meeting in Rio de Janeiro raised "serious concerns" that the "indiscriminate" import tariffs were illegal and risked hurting global trade. Trump lashed out at the group – which comprises 11 nations including Brazil, Russia, India and China – in response. "Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy," Trump wrote. bur-dk/dhc
Sinar Daily
31 minutes ago
- Sinar Daily
US tariffs to kick in Aug 1, barring trade deals
The president told reporters Sunday he had signed about a dozen letters to inform countries of rate hikes, to be sent out on Monday. 07 Jul 2025 11:29am US President Donald Trump steps on stage to deliver remarks at the Salute to America Celebration at the Iowa State Fairgrounds in Des Moines on July 3, 2025. - (Photo by ANDREW CABALLERO-REYNOLDS / AFP) WASHINGTON - US tariffs will kick in on Aug 1 if trading partners from Taiwan to the European Union do not strike deals with Washington, Treasury Secretary Scott Bessent said Sunday. The rates will "boomerang back" to the sometimes very high levels that President Donald Trump had announced on April 2 -- before he suspended the levies to allow for trade talks and set a July 9 deadline for agreements, Bessent told CNN. Bessent confirmed comments by Trump to reporters aboard Air Force One on Friday in which he also cited a new deadline: "Well, I'll probably start them on Aug 1." The president told reporters Sunday he had signed about a dozen letters to inform countries of rate hikes, to be sent out on Monday. "I think we'll have most countries done by July 9, either a letter or a deal," Trump told reporters Sunday, adding that some deals have already been made. Standing at his side, US Commerce Secretary Howard Lutnick confirmed tariffs would kick in on Aug 1, "but the President is setting the rates and the deals right now." The tariffs were part of a broader announcement in April where Trump imposed a 10 percent duty on goods from almost all trading partners, with a plan to step up these rates for a select group within days. But he swiftly paused the hikes until July 9, allowing for trade talks to take place. Countries have been pushing to strike deals that would help them avoid these elevated duties. So far, the Trump administration has unveiled deals with the United Kingdom and Vietnam, while Washington and Beijing agreed to temporarily lower staggeringly high levies on each other's products. Bessent said the administration was "close to several deals." "I would expect to see several big announcements over the next couple of days," he said. But he would not say which countries he was referring to, adding: "I don't want to let them off the hook." - 'Maximum pressure' playbook - Aboard Air Force One on Friday, Trump said sending notices would be much easier than "sitting down and working 15 different things... this is what you have to pay, if you want to do business (with) the United States." Bessent pushed back at CNN host Dana Bash's assertion the administration was using threats rather than negotiations, and denied that Trump was setting a new deadline with the Aug 1 date. "It's not a new deadline. 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 said. He said the playbook was to apply "maximum pressure" and cited the European Union as an example, saying they are "making very good progress" after a slow start. EU and US negotiators are holding talks over the weekend, and France's finance minister said Saturday he hoped they could strike a deal this weekend. Other countries were still expressing unease, however. Japan's Prime Minister Shigeru Ishiba said Sunday he "won't easily compromise" in trade talks with Washington. And BRICS leaders of fast-growing economies meeting in Rio de Janeiro raised "serious concerns" that the "indiscriminate" import tariffs were illegal and risked hurting global trade. When probed about worries that steep levies could feed into broader US inflation, Bessent said there was a difference between "inflation and one-time price adjustments." "Inflation is a generalised monetary phenomenon. We're not going to see that. And thus far, we haven't even seen the one-time price adjustments," Bessent told Fox News Sunday. - AFP More Like This
Malay Mail
44 minutes ago
- Malay Mail
Greenback stumbles to multi-year lows ahead of Trump's trade D-Day
TOKYO, July 7 — The US dollar hovered near its lowest since 2021 against the euro and the weakest since 2015 versus the Swiss franc today, with traders alert for any trade-related headlines in the countdown to President Donald Trump's tariff deadline. Most US trade partners are set to see much steeper duties at the end of the 90-day moratorium on Trump's 'Liberation Day' reciprocal tariffs on Wednesday, with the president yesterday clarifying the new rates would take effect from August 1. Trump said his administration is close to finalizing several trade deals in the coming days, while he will name some dozen countries later today that are receiving letters with their new, higher levies. So far, only Britain, China and Vietnam have agreed any sort of trade deal with the White House. 'Market volatility appears inevitable when the pause officially ends and new tariff levels are announced,' James Kniveton, a senior corporate FX dealer at Convera, wrote in a client note. At the same time, 'the impact may prove more muted this time,' he said. 'Unlike previous announcements where tariff levels exceeded expectations, current proposals are largely anticipated. Moreover, markets appear to be pricing in continued deadline extensions.' The dollar slipped 0.1 per cent to 0.7944 Swiss franc in Asian trading, edging back towards the July 1 low of 0.7869 franc, a level not seen since January 2015. The US currency edged up slightly to ¥144.73. The euro eased 0.1 per cent to US$1.1773, not straying far from the July 1 peak of US$1.1829, the highest since September 2021. Sterling weakened 0.2 per cent to US$1.3628, but remained not far from the July 1 top at US$1.3787, the strongest since October 2021. The dollar index, which measures the currency against those four rivals and two more major counterparts, added 0.1 per cent to 97.058, hovering above Tuesday's nearly 3-1/2-year trough of 96.373. The Antipodean currencies were weak ahead of monetary policy decisions in both Australia and New Zealand over the next two days. The Aussie dollar dropped 0.5 per cent to US$0.6519, sliding further from July 1's nearly eight-month high of US$0.6590. The Reserve Bank of Australia is widely expected to cut the cash rate by another quarter point tomorrow amid a cooling in inflation and an uncertain growth outlook. 'These factors, combined with ongoing concerns around tariffs and trade, have negated any concerns that the RBA may have held about a tight labour market,' IG analyst Tony Sycamore wrote in a client note. 'Forward guidance is expected to sound dovish, leaving the door open for further rate cuts into year-end.' The Reserve Bank of New Zealand, by contrast, is predicted by a majority of economists to hold rates steady on Wednesday, although one more quarter-point reduction is expected later this year. The New Zealand dollar slipped 0.4 per cent to US$0.6026. — Reuters
