The global trade standoff has a new, hard deadline. Treasury Secretary Scott Bessent confirmed Sunday that the United States will reimpose tariffs on August 1 for any trading partner—from Taiwan to the European Union—that fails to strike a deal with Washington.
In a stark warning, Bessent told CNN that the rates will “boomerang back” to the high levels President Donald Trump announced on April 2, before he suspended the levies for 90 days to allow for negotiations. That truce is now effectively over.
The move formalizes President Trump’s shift to a hardball strategy. Speaking to reporters aboard Air Force One on Friday, Trump dismissed lengthy negotiations, signaling a move to ultimatums. “This is what you have to pay, if you want to do business (with) the United States,” he said, confirming he had signed 12 letters to be sent to various countries.
A High-Stakes Global Scorecard
This “maximum pressure” campaign has yielded some results. The Trump administration has already secured deals with the United Kingdom and Vietnam, while reaching a temporary truce with Beijing to lower a portion of the staggeringly high levies between the two nations.
Bessent hinted that more agreements are imminent. “We are close to several deals,” he said. “I would expect to see several big announcements over the next couple of days.”
However, in a move to keep the pressure on, he refused to name the countries, adding, “I don’t want to let them off the hook.”
Pushback from Around the World
But the rest of the world isn’t standing by quietly. The European Union, which Bessent cited as an example of a partner “making very good progress” under pressure, held last-ditch talks over the weekend.
Elsewhere, the response has been defiant. Japan’s Prime Minister Shigeru Ishiba stated Sunday that he “won’t easily compromise” in trade talks with Washington. Meanwhile, leaders of the BRICS nations (Brazil, Russia, India, China, and South Africa) are expected to formally decry the tariffs as illegal and a risk to the global economy.
Defending the administration’s approach, Bessent pushed back against the idea that the August 1 date was a new deadline. “It’s not a new deadline,” he insisted. “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.”
