The United States is on the verge of finalising multiple trade agreements in the coming days and will inform other countries about increased tariff rates by July 9, US President Donald Trump said on Sunday, adding that the revised rates are set to come into effect from August 1.
Trump and other top officials had flagged the August 1 date earlier, but it was unclear if all tariffs would increase then.
Asked to clarify, Commerce Secretary Howard Lutnick told reporters the higher tariffs would take effect on August 1, but Trump was “setting the rates and the deals right now”.
Trump in April announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% until July 9. The new date offers countries a three-week reprieve.
Big Announcements Shortly
US Treasury Secretary Scott Bessent told CNN’s “State of the Union” earlier on Sunday that several big announcements of trade agreements could come in the next days, noting the European Union had made good progress in its talks.
He said Trump would also send out letters to 100 smaller countries with whom the US doesn’t have much trade, notifying them that they would face higher tariff rates first set on April 2 and then suspended until July 9.
“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level. So, I think we’re going to see a lot of deals very quickly,” Bessent told CNN.
Wiggle Room
Since taking office, Trump has set off a global trade war that has roiled financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.
Kevin Hassett, who heads the White House National Economic Council, told CBS’s “Face the Nation” programme there might be wiggle room for countries engaged in earnest negotiations.
“There are deadlines, and there are things that are close, and so maybe things will push back past the deadline,” Hassett said, adding that Trump would decide if that could happen.
‘I Hear Good Things’
Stephen Miran, chairman of the White House Council of Economic Advisers, told ABC News’ “This Week” programme that countries needed to make concessions to get lower tariff rates.
“I hear good things about the talks with Europe. I hear good things about the talks with India,” Miran said. “And so, I would expect that a number of countries that are in the process of making those concessions… might see their date rolled.”
Bessent told CNN the Trump administration was focused on 18 important trading partners that account for 95% of the US trade deficit. But he said there had been “a lot of foot-dragging” among countries in finalizing trade deals.
Trump has repeatedly said India is close to signing a deal and expressed hope that an agreement could be reached with the European Union, while casting doubt on a deal with Japan.
Thailand, keen to avert a 36% tariff, is now offering greater market access for US farm and industrial goods and more purchases of US energy and Boeing jets, Finance Minister Pichai Chunhavajira told Bloomberg News on Sunday.
India and the United States are likely to make a final decision on a mini trade deal in the next 24 to 48 hours, local Indian news channel CNBC-TV18 reported on Sunday, with average tariffs on Indian goods shipped to the US to be 10%, it said.
Hassett told CBS News that framework agreements already reached with Britain and Vietnam offered guidelines for other countries seeking trade deals. He said Trump’s pressure was prompting countries to move production to the United States.
Miran called the Vietnam deal “fantastic”.
“It’s extremely one-sided. We get to apply a significant tariff to Vietnamese exports. They’re opening their markets to ours, applying zero tariff to our exports.”
(With inputs from Reuters)
