U.S. Tariffs to Revert to April Levels August 1 Without Trade Deals

U.S. tariffs are set to revert to their original levels on August 1, if no trade agreements are reached by that date, according to Treasury Secretary Scott Bessent. This announcement comes as a follow-up to President Donald Trump's earlier statements, where he indicated a new deadline for the tariffs. The rates, which were initially announced in April, were suspended to allow for trade negotiations and were set to be reimposed if no agreements were made by July 9.

Bessent confirmed that the tariffs will "boomerang back" to the high levels announced in April if trading partners do not reach deals with the U.S. by August 1. He also mentioned that the administration is close to finalizing several trade deals, although he did not specify which countries are involved. The U.S. has already reached agreements with the United Kingdom and Vietnam, and has temporarily lowered tariffs with China.

Countries around the world have been actively seeking deals to avoid the elevated tariffs. The U.S. administration has been applying "maximum pressure" to encourage negotiations, with the European Union being cited as an example of progress in talks. However, not all countries are on board with the U.S. approach. Japan's Prime Minister Shigeru Ishiba has stated that he will not easily compromise in trade talks with the U.S., and leaders from the BRICS nations are expected to criticize the tariffs, stating that they are illegal and pose a risk to the global economy.

Bessent denied that the August 1 deadline is a new one, stating that it is simply the date when the tariffs will be reimposed if no deals are reached. He also pushed back against the idea that the administration is using threats rather than negotiations, stating that the U.S. is simply applying pressure to encourage countries to reach agreements. The administration has been sending letters to trading partners to inform them of the U.S. tariff rates, with Trump stating that this approach is easier than negotiating individual deals.