U.S. Treasury Expects Surge in Trade Deals Before July 9... Warns Tariffs May Remain or Drop to 10%

On CNBC: "Could Revert to Reciprocal Tariffs as of April 2"
On Bloomberg: "10% Tariff to Be Imposed on 100 Countries"
Maximizing Uncertainty to Pressure for Swift Agreements

U.S. Treasury Secretary Scott Besant has warned that countries failing to reach a trade agreement with the United States before the expiration of the reciprocal tariff suspension on July 8 may be subject to the previously announced tariff rates.

Reuters Yonhap News

In an interview with CNBC on July 3 (local time), Secretary Besant stated, "Every country waits until the last moment when they think they can get the best deal," and added, "These countries should be wary that they could revert to the reciprocal tariff rates as of April 2."

This means that if major trading partners do not finalize trade agreements with the U.S. by next week, when the reciprocal tariff suspension ends, they may face the originally announced tariff rates, and thus should expedite negotiations.

When asked about the possibility of extending the reciprocal tariff suspension, Secretary Besant responded, "We will do whatever President (Donald) Trump wants," and added, "The only person who will judge whether they are negotiating in good faith is the President." He continued, "At a time when they need to make an effort to cross the finish line, we are not going to go on national television and announce an extension of the (basic tariff) 10%."

Previously, President Trump announced reciprocal tariffs by country on April 2, and applied a 90-day suspension to the country-specific reciprocal tariffs, excluding the basic 10% tariff. This measure is scheduled to end at 12:01 a.m. on July 9, and the U.S. is currently negotiating with various countries to reach trade agreements before the suspension expires. So far, only the United Kingdom and Vietnam have concluded trade agreements with the United States.

However, in an interview with Bloomberg TV on the same day, Secretary Besant said, "I expect a surge of trade agreements before July 9," and added, "About 100 countries will be subject to the minimum 10% reciprocal tariff and then move on to the next stage."

By simultaneously hinting at the possibility of imposing the previously announced tariff rates after the reciprocal tariff suspension ends and the potential extension of the current suspension, the U.S. is seen as maximizing uncertainty to pressure trading partners into quickly concluding trade agreements.