The United States will prioritize the quality of trade agreements over meeting the August 1 deadline, even if it means risking the imposition of higher tariffs. Treasury Secretary Scott Bessent emphasized on Monday that the administration refuses to strike deals just to stay on schedule.
Bessent: “It’s Not About the Date—It’s About the Outcome”
“We’re not going to rush deals just to meet a deadline,” Bessent said in an interview with CNBC, adding that any agreement must bring real benefits to the United States. When asked whether countries engaged in productive negotiations might receive an extension, Bessent replied that it’s up to President Trump: “We’ll see what the President decides to do.”
He added that moving forward with the planned tariffs—possibly increasing them—could strengthen the U.S. bargaining position. “I think higher tariff levels could put more pressure on these countries to come back with better deals,” he noted.
U.S.–China Talks and Pressure on Europe Over Russia
Regarding China, Bessent confirmed that new rounds of talks are scheduled “in the very near future.” However, he pointed to a key issue: “Unfortunately, the Chinese are major importers of sanctioned Iranian and Russian oil.” He emphasized that China must rebalance its economy and reduce reliance on such imports, calling it “the elephant in the room.”
Bessent also stated he would push European allies to join the U.S. in imposing secondary sanctions on Russian goods. As for Japan, he clarified that the administration’s focus is not on internal political factors but on securing “the best deal for Americans.”
Bessent Calls for a Broad Review of the Federal Reserve’s Role
Later in the interview, Bessent issued a surprising call to reevaluate the role of the Federal Reserve. “We need to examine the Federal Reserve as an institution and ask whether it has fulfilled its mandate,” he said on CNBC’s Squawk Box.
He compared the situation to the FAA, which would face a full investigation if it repeatedly made serious errors. Bessent’s remarks come amid growing friction between the Fed and the White House, particularly over a controversial $2.5 billion renovation project of two buildings in Washington, D.C.
It remains unclear how such a review would be conducted or by whom. Last week, media reports suggested that President Trump had considered firing Fed Chair Jerome Powell—a rumor he later denied, although the topic sparked legal concerns and political debate.
Bessent: “The President Will Weigh Many Views—But the Decision Is His”
Bessent, often mentioned as a possible successor to Powell, said President Trump listens to a range of opinions before making decisions. “President Trump will seek input from many advisers and then decide,” he said. The Wall Street Journal reported that Bessent had tried to dissuade Trump from firing Powell—something Bessent didn’t confirm, but commented: “The President evaluates all input, and the final decision is his.”
President Trump has repeatedly urged the Fed to slash the federal funds rate sharply—a demand unlikely to be met regardless of who leads the central bank. Meanwhile, the administration has criticized the Fed’s budget overruns on the D.C. renovations, reportedly planning an on-site inspection to assess the progress firsthand.
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