Trump Holds Key to July 9 Tariff Deadline Extension

Treasury Secretary Scott Bessent has stated that the decision to extend trade talks beyond the July 9 deadline, when higher tariff rates are set to take effect, rests solely with President Donald Trump. This announcement comes as various countries engage in negotiations with the United States to avoid the impending tariff increases. Bessent emphasized that the final call on extending the deadline will be made by the President, who has previously indicated flexibility in the timeline.

Both President Trump and Bessent have framed the July 9 deadline as not being set in stone. The President has expressed that the administration has the discretion to extend the deadline if necessary, suggesting that the timeline is subject to change based on the progress of negotiations. This flexibility allows for continued discussions with countries that are negotiating "in good faith," as Bessent noted.

Bessent also commented on the progress of trade talks with specific countries. Regarding the European Union, he mentioned that U.S. Trade Representative Jamieson Greer would be working diligently over the weekend with Europe’s officials to make progress. However, he did not provide specific details on the status of these negotiations. Additionally, Bessent noted that Japan’s upper house election on July 20 has created domestic constraints for finalizing a deal, indicating that the negotiations with Japan are ongoing but face challenges due to domestic political factors.

Bessent's remarks highlight the administration's approach to trade negotiations, which involves a combination of tariff threats and potential extensions to encourage countries to reach agreements. The Treasury Secretary's comments also underscore the President's central role in these decisions, emphasizing that the final outcome of trade talks will be determined by Trump's discretion. This approach allows for a dynamic negotiation process, where the administration can adjust its strategy based on the progress of discussions with various trade partners.

In addition to trade talks, Bessent also addressed the upcoming selection of a successor to Federal Reserve Chairman Jerome Powell. He stated that the administration will turn its attention to this process in the fall and that there are "a lot of good candidates" under consideration. Bessent noted that the Fed would make its own decisions about interest rates, but if they did not fall soon, any cut in September could be larger. He also mentioned that his name has been suggested for the Fed’s job, but he did not confirm or deny his interest in the position.