U.S. to Reinstate Tariffs August 1 If Trade Deals Fall Through, Treasury Chief Warns

The United States is preparing to reimpose sweeping tariffs on goods from key trading partners—including Taiwan and the European Union—if ongoing trade talks fail to produce concrete agreements by the end of July, Treasury Secretary Scott Bessent said on Sunday.

Speaking during an interview with CNN, Bessent confirmed that the elevated tariff rates, first announced by President Donald Trump in early April, would take effect on August 1 if no deals are reached.

The tariffs, which Trump temporarily suspended to allow room for negotiations, are now set to “boomerang back” unless countries move quickly to finalize agreements.

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The original announcement in April unveiled a 10% duty on a broad range of imports, with plans to significantly increase the rate on select nations in the following days. However, the administration delayed the full implementation, setting a July 9 deadline to allow space for diplomacy and trade talks.

Now, with that deadline fast approaching, Trump has reiterated his intention to follow through. Speaking aboard Air Force One on Friday, the president said he had signed 12 letters to be sent to affected nations, laying out the tariffs they could face unless a deal is reached.

“Well, I’ll probably start them on August 1. Well, that’s pretty early, right?” Trump said, indicating that the letters would go out Monday.

So far, Washington has struck deals with the United Kingdom and Vietnam. Talks with China have also led to a temporary reduction in some of the steepest reciprocal tariffs, signaling tentative progress in a few areas.

Bessent said the U.S. is “close to several deals” and hinted at more announcements in the coming days. However, he declined to name the countries involved. “I don’t want to let them off the hook,” he said, emphasizing the administration’s strategy of maintaining pressure until the last moment.

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The Treasury Secretary pushed back on criticism that the U.S. was using coercion over negotiation. “It’s not a new deadline,” Bessent clarified, responding to questions about the August 1 date. “This is when it’s happening. If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice.”

He emphasized that the administration’s approach is built on applying “maximum pressure,” pointing to the European Union as an example. While initial talks were slow, Bessent noted that progress has been made. EU and U.S. negotiators held discussions over the weekend, and France’s finance minister expressed hope on Saturday that an agreement could be finalized soon.

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