Trump: July 9 Deadline Flexible, but Also Threatens High Tariffs by Then
President Donald Trump and Treasury Secretary Scott Bessent, in different appearances on the same day, said that negotiations do not need to conclude by July 8 to avoid higher reciprocal tariff rates at 12:01 July 9.
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Bessent said on Fox Business News, "I think we could have trade wrapped up by Labor Day."
Trump didn't answer directly when asked what would happen on July 9, but said there would probably be four or five deals ready, and suggested that the U.S. would continue to negotiate with India, but could set tariff rates for some other countries that have been negotiating.
"Over the next week and a half or so, or maybe before, we're going to send out a letter ... we've talked to many of the countries, and we're just going to tell them what they have to pay to do business in the United States," he said.
Fox host Maria Bartiromo framed the deadline differently, suggesting that a ruling from an appellate court on the legality of emergency tariffs expected in August is the real deadline. It was in response to that question that Bessent said it could be wrapped up by Labor Day.
Bessent said that Trump had "created maximum negotiating leverage" for the U.S. trade representative, Commerce Secretary Howard Lutnick and himself -- all three men are working on trade negotiations.
"I think a lot of the countries are feeling pressure," he said. Bessent repeated what Lutnick had said the day before, that 10 more deals are expected, and said that if the U.S. could ink deals with a dozen of the 18 largest trading partners, and get deals with some of the next 20 important partners, that would mean trade talks could be over by the end of the summer.
"We have countries approaching us with very good deals," Bessent said. He added that Trump would be happy to impose the tariff levels announced in April.
Bartiromo also asked Bessent if higher China tariffs would return after the Aug. 12 date when the current 30% tariffs are set to end.
Bessent said that if China is forthcoming with rare-earth magnets, "we can keep this de-escalation." He said that while there are goods that the U.S. would like to de-risk by decoupling from China, such as semiconductors, medicines and steel, on the whole, the U.S. doesn't want to decouple from China. Bessent had previously said that a 145% tariff on Chinese goods was an effective embargo on trade with China.
At an event on international taxes and tariffs hosted by Georgetown Law, Treasury Deputy Secretary Michael Faulkender said that the U.K. trade deal "is a great preview of what is to come. Importantly, we are very close to finalizing trade deals with many other countries, and are awaiting an announcement after we finalize the One Big Beautiful Bill."
That is the name of the bill under consideration in the Senate to extend the first Trump-administration individual and pass-through business tax cuts and to add new tax cuts for tips and overtime. The president had demanded the bill be passed by July 4, but in the June 27 press conference, suggested that date could slip.
The bill includes an increase to the debt limit; the Treasury Department has estimated that the federal government will fall short of the money it needs to fulfill its obligations in mid-August without a debt limit increase.