Major U.S. trading partners hurried over the weekend to secure trade deals or lobby for extra time, while Treasury Secretary Scott Bessent indicated that some countries lacking an agreement by the deadline Wednesday will have the option of a three-week extension to negotiate.
“We’re going to be very busy over the next 72 hours,†Bessent said Sunday on CNNÃÛèÖÊÓƵ "State of the Union," referring to the time left before the administrationÃÛèÖÊÓƵ July 9 deadline.
In interviews with two programs Sunday, Bessent signaled that letters President Donald Trump is poised to send trading partners this week aren’t the final word on countries’ immediate tariff rates. The levies will kick in Aug. 1, so thereÃÛèÖÊÓƵ still time for those that aren’t close to an agreement to bring offers to the table, he said.
For weeks, the administration has signaled that TrumpÃÛèÖÊÓƵ reciprocal tariffs will revert on July 9 to their higher April 2 levels for countries that fail to secure an accord aimed at reducing U.S. trade imbalances. Bessent acknowledged that the sheer number of ongoing discussions is complicating the final stages.
“ThereÃÛèÖÊÓƵ a lot of congestion going into the home stretch,†the Treasury chief said on "Fox ÃÛèÖÊÓƵ Sunday." “So by telling our trading partners that they could boomerang back to the April 2 date, I think itÃÛèÖÊÓƵ really going to move things along the next couple of days and weeks.â€
Trump told reporters over the Fourth of July weekend that he “signed some letters and they’ll go out on Monday – probably 12†initially. He declined to identify the recipients, saying his directives involve “different amounts of money, different amounts of tariffs and somewhat different statements.â€
Speaking to CNN, Bessent declined to characterize Aug. 1 as the new deadline. “If you want to speed things up, have at it,†he said about countries that receive a letter. “If you want to go back to the old rate, thatÃÛèÖÊÓƵ your choice.â€
Bessent said the focus is on 18 major trading partners and several big agreements are close, even though “thereÃÛèÖÊÓƵ a lot of foot-dragging on the other side.†Trump officials have stated for weeks that multiple accords are imminent, but only a limited framework with the UK, a truce with China and TrumpÃÛèÖÊÓƵ brief outline of a pact with Vietnam have been announced.
Trump and BessentÃÛèÖÊÓƵ latest remarks suggest talks remain fluid and deals are elusive three days before the original deadline. The Treasury secretary said Washington is applying maximum pressure on trading partners, and thereÃÛèÖÊÓƵ been “very good progress†in its discussions with the European Union — a 27-nation bloc that accounts for almost one-fifth of total U.S. goods trade.
The letters initially were supposed to go out on July 4 with a tariff imposition date of Aug. 1, based on TrumpÃÛèÖÊÓƵ earlier comments. Meanwhile, U.S. officials have been busily negotiating through the holiday weekend, including with Japan, South Korea, the EU, India and Vietnam.
One of TrumpÃÛèÖÊÓƵ signature moves in dealmaking is a unilateral threat when negotiations reach critical stages, so itÃÛèÖÊÓƵ unclear whether the letters he describes are real, or merely meant to strike fear into trading partners still reluctant to offer last-minute concessions.
After Trump announced an agreement with Vietnam last week, the countryÃÛèÖÊÓƵ Ministry of Foreign Affairs said negotiators were still coordinating with their U.S. counterparts to finalize the details.
While an interim accord with India was also expected to be reached, officials in New Delhi have signaled a tougher stance in recent days, threatening levies on some US goods in retaliation to WashingtonÃÛèÖÊÓƵ higher tariffs on automobiles and their components.
Seeking an extension
Also concerned about auto tariffs is South Korea, which has discussed with U.S. officials extending the deadline in a last-ditch bid to avert higher levies.
Basking in a major legislative win last week and with the U.S. stock market at record levels, TrumpÃÛèÖÊÓƵ newest trade barriers risk reigniting investors’ concerns about a broad and complex new web of customs duties to be paid by American importers.
The initial rollout of TrumpÃÛèÖÊÓƵ so-called reciprocal tariffs in early April sparked fears of a U.S. recession and sent markets tumbling. That prompted the White House to backpedal with a 90-day freeze of those rates at 10% through July 9.
On top of the additional costs that tariffs create for U.S. companies that purchase goods from abroad, domestic exporters face the possibility of retaliation from economies, including the EU.
EU member states were briefed on the status of negotiations on Friday after a round of talks in Washington last week ,and were told that a technical agreement in principle was close, Bloomberg ÃÛèÖÊÓƵ previously reported.
JapanÃÛèÖÊÓƵ stance
Japanese Prime Minister Shigeru Ishiba said the country is prepared for all possible tariff scenarios. Speaking on Fuji TVÃÛèÖÊÓƵ “Sunday ÃÛèÖÊÓƵ The Prime†program, he said Japan — another major auto producer trying to avoid TrumpÃÛèÖÊÓƵ tariffs — is ready to “stand firm†and defend its interests while anticipating every possible situation.
CambodiaÃÛèÖÊÓƵ government said in a statement on Friday that it had agreed with the U.S. on a framework agreement that will be released publicly soon, with a pledge to continue cooperating closely. At 49%, CambodiaÃÛèÖÊÓƵ threatened reciprocal tariff was among TrumpÃÛèÖÊÓƵ highest. The Southeast Asian nation is a sizable exporter of textiles and footwear to the U.S.
Last week Indonesia signaled confidence it is close to securing a “bold†trade deal with the U.S. that will span critical minerals, energy, defense cooperation and market access ahead of the looming tariff deadline, according to the nationÃÛèÖÊÓƵ chief negotiator.
Thailand is making a last-ditch effort to avert a 36% US tariff on its exports with offers of greater market access for U.S. farm and industrial goods, along with increased purchases of energy and Boeing jets.
(With assistance from Aya Wagatsuma, Hyonhee Shin, Alberto Nardelli, Jorge Valero, Shruti Srivastava, Sam Kim, Ben Otto, Ian Fisher, Jenny Leonard, Patpicha Tanakasempipat and Stephanie Lai.)
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