Second Impact Coming?! U.S. Treasury Secretary Warns: If Trade Agreement Is Not Reached, 'Liberation Day' Tariffs May Return!
Recently, the U.S. has reached trade agreements with the UK and China, significantly easing global trade tensions. However, uncertainty surrounding tariffs still lingers.
On Sunday local time, U.S. Treasury Secretary Bessent warned that some U.S. trading partners may soon face a substantial increase in tariff rates again.
Bessent stated in a media interview that if countries do not negotiate 'sincerely' before the expiration of the tariff suspension period in early July and fail to reach a trade agreement, tariff rates will soon revert to 'Liberation Day' levels.
U.S. President Trump announced a series of 'reciprocal tariffs' on April 2 and referred to that day as 'Liberation Day.' He subsequently delayed the implementation of these tariffs for 90 days, during which only a 10% baseline tariff was imposed.
Trump indicated last Friday that in the next two to three weeks, the U.S. may unilaterally set new tariff rates for many trading partners, claiming that the U.S. lacks the ability to reach agreements with all trading partners through negotiations. He also mentioned that Treasury Secretary Bessent and Commerce Secretary Luthnick will send letters to some trading partners informing them of how much they need to pay to do business in the U.S.
Bessent stated, 'If you do not want to negotiate, then (the tariff level) will revert to the level it was on April 2.' He also pointed out that the tariff rates faced by many countries are far higher than the current 10%.
Bessent further stated that, with few exceptions, countries have proposed 'very good offers,' expressing a desire to lower tariffs and reduce non-tariff barriers.
He also mentioned that the current focus for the U.S. is to reach agreements with 18 'important' trading partners.
Bessent acknowledged that U.S. consumers may feel the impact of tariffs imposed by the Trump administration.
Regarding Walmart's price increase plan announced last week, Bessent stated that he had a direct conversation with Walmart CEO Doug McMillon last Saturday. He mentioned, 'Walmart will bear some of the tariffs, and some tariffs may be passed on to consumers.'
