The Treasury Department cautioned on Sunday that the mutual tariffs on trading partners might revert to the pre-“liberation day” rates from last month if good faith negotiations don’t take place.
“I think it could return to the level seen on April 2nd,” Bescent remarked during an appearance on NBC’s “Meeting Kristen Welker,” when asked about potential future tariff rates exceeding 10%.
He noted, “Some countries faced tariffs at 10%, but others were significantly higher. The leverage that President Trump is alluding to would revert back to April 2 if negotiations fall through.”
Welker inquired about Trump’s recent statements, pointing out that trading partners should anticipate a letter from administrative authorities specifying the tariff rate, indicating that the negotiation window was closing.
“This suggests they aren’t negotiating in good faith. They’ll receive a letter stating, ‘Here’s the rate.’ I had hoped everyone would approach this sincerely,” the secretary commented.
Trump suspended mutual tariffs for trading partners for 90 days a week following “liberation day” due to pressure from Wall Street and Republicans amid stock market instability. At the outset of the suspension, he placed a 10% tariff on all foreign nations except China.
A hefty 145% tariff was initially imposed on China, but it was reduced to 30% last week, signaling a de-escalation in the ongoing trade conflict with Beijing.
The administration has been actively engaging with various officials since the suspension kicked in, with Bescent leading those talks. Earlier this month, a trade agreement was signed with the UK, which aims to significantly boost market access for US exports.
Even with China’s low tariff rates, Walmart recently alerted that it would have to raise prices on certain items. Trump responded on Saturday, instructing Walmart, which made billions last year, not to pass extra costs onto customers.
