US tariffs to take effect on August 1 if no trade agreements are reached

(Patria) - US tariffs will take effect on August 1 if trade partners from Taiwan to the European Union do not reach agreements with Washington, Treasury Secretary Scott Bessent said on Sunday.

The rates will "come back like a boomerang" to the sometimes very high levels that President Donald Trump announced on April 2, before suspending tariffs to allow trade negotiations and setting a deadline for agreements on July 9, Bessent told CNN, AFP reported.

Bessent confirmed Trump's comments to reporters on Air Force One on Friday, in which he also set a new deadline: "Well, I'll probably start them on August 1."
The president told reporters on Sunday that he had signed about a dozen letters to notify countries of the rate increases, which will be sent on Monday.

"I think we'll finish with most countries by July 9, either a letter or an agreement," Trump told reporters on Sunday, adding that some agreements have already been reached.

Standing next to him, US Commerce Secretary Howard Lutnick confirmed that tariffs will take effect on August 1, "but the president is now setting the rates and agreements."

The tariffs were part of a broader announcement in April, in which Trump imposed a 10 percent tariff on goods from nearly all trading partners, with plans to increase those rates for a selected group within days. But he quickly paused the increases until July 9, allowing trade negotiations to take place.
Countries have been pushing for agreements that would help them avoid these increased tariffs.

So far, the Trump administration has agreements with the United Kingdom and Vietnam, and Washington and Beijing have agreed to temporarily lower the very high tariffs on each other's products.

Bessent said the administration is "close to several agreements."

"I would expect to see several major announcements in the next few days," he said. But he did not say which countries he was referring to, adding: "I don't want to let them off the hook."

Manual for 'maximum pressure'

On Friday, aboard Air Force One, Trump said that sending notifications would be much easier than "sitting and working on fifteen different things... this is what you have to pay if you want to do business with the United States."

Bessent disputed the CNN host's claim that the administration is using threats instead of negotiations and denied that Trump is setting a new deadline with the August 1 date.

"That's not a new deadline. We're saying, this is the moment when it happens. If you want to speed things up, go ahead. If you want to go back to the old rate, that's your choice," he said.

He said the manual was to apply "maximum pressure" and cited the European Union as an example, saying they are "making very good progress" after a slow start.

European Union and United States negotiators held talks over the weekend, and the French finance minister said on Saturday he hoped they could reach a deal this weekend.

However, other countries continued to express discomfort.

Japanese Prime Minister Shigeru Ishiba stated on Sunday that he "will not easily compromise" in trade negotiations with Washington.

BRICS leaders at a meeting in Rio de Janeiro expressed "serious concern" that "indiscriminate" import tariffs are illegal and risk harming global trade.

When asked about concerns that high tariffs could affect broader inflation in the US, Bessent said there is a difference between "inflation and one-time price adjustments."

"Inflation is a generalized monetary phenomenon. We won't see that. And so far, we haven't seen even one-time price adjustments," Bessent told Fox News Sunday.