NEW YORK: Over the weekend, key U.S. trading nations moved quickly to finalize trade agreements or seek additional time. Treasury Secretary Scott Bessent mentioned that certain countries without finalized deals by the upcoming Wednesday deadline would be eligible for a three-week extension to continue negotiations.
"We're expecting to stay extremely occupied during the upcoming three days," Bessent remarked on Sunday during an interview with CNN's State of the Union, alluding to the remaining window until the government’s July 9 cutoff date.
In appearances on two talk shows over the weekend, Bessent indicated that the letters President Donald Trump plans to issue to trade partners this week regarding tariffs won't be the definitive stance on current tariff levels. He noted that since the new duties won’t take effect until August 1, nations not yet near a deal still have time to present proposals.
For several weeks, the government had indicated that Trump’s retaliatory tariffs would return to their elevated rates from April 2 starting July 9 for nations unable to reach agreements intended to address U.S. trade disparities. Bessent admitted that the large volume of active negotiations is making the closing phases more complex.
There’s significant gridlock as we approach the final phase," the treasury secretary remarked on *Fox News Sunday*. "By informing our trade counterparts that matters might revert to the April 2 deadline, I believe this will help push progress forward over the coming days and weeks.
During the Fourth of July weekend, Trump informed reporters that he had "signed several letters which will be sent out on Monday—probably around 12" at first. He did not reveal who would receive them, explaining that his instructions included "various sums of money, differing tariff levels, and slightly different messages."
In an interview with CNN, Bessent avoided referring to August 1st as the revised deadline. "If you'd like to move faster, feel free," he remarked regarding nations receiving the notice. "And if you prefer returning to the previous rate, that decision rests with you."
Bessent mentioned that attention is centered on 18 key trading partners, stating that some significant deals are nearing completion, despite "considerable delays from the other party." For weeks now, Trump administration officials have claimed that numerous trade agreements are about to be finalized; however, so far only an initial agreement with the UK has emerged alongside a temporary resolution involving China and a preliminary summary of a deal with Vietnam outlined by Trump himself.
Trump and Bessent's most recent comments indicate that negotiations are still ongoing without clear agreements reached just three days prior to the initial deadline. The Treasury Secretary stated that Washington continues to exert strong influence over its trade counterparts, noting "significant advancements" in conversations with the European Union—a union of 27 countries responsible for nearly 20% of America's overall merchandise trade.
Originally, the letters were set to be sent out on July 4th, carrying an August 1st deadline for tariffs being imposed—based on previous remarks made by Trump. At the same time, American representatives have spent the public holiday period engaged in active discussions, reaching out particularly to countries like Japan, South Korea, members of the European Union, as well as nations such as India and Vietnam.
A hallmark tactic Trump uses in deals is issuing one-sided threats as discussions hit crucial points, making it uncertain whether the letters mentioned actually exist or were simply intended to intimidate trade counterparts who hesitated before offering final compromises.
Following Trump's announcement of a deal with Vietnam last week, the country's Ministry of Foreign Affairs stated that officials were still working closely with their U.S. colleagues to finalize the specifics.
Although an interim agreement with India was anticipated, authorities in New Delhi have recently adopted a firmer approach, indicating potential taxes on certain American products as a response to increased U.S. duties on vehicles and related parts.
Seeking an extension
South Korea is also worried about potential auto tariffs and has engaged in discussions with U.S. authorities in a final effort to extend the deadline and prevent increased duties.
Enjoying a significant legislative victory recently and seeing U.S. stocks hit all-time highs, Trump's latest trade restrictions could stir renewed worries among investors over an expansive and intricate system of tariffs facing American companies importing goods.
Trump’s introduction of his proposed reciprocal tariffs in early April triggered concerns about a potential U.S. economic downturn and caused financial markets to decline sharply. In response, the White House reversed course, implementing a 90-day pause that kept the tariff rate steady at 10% until July 9.
In addition to the extra expenses tariffs impose on American businesses buying products overseas, local exporters risk facing retaliatory measures from trading partners like the European Union.
European Union countries received an update on the progress of discussions during a briefing held on Friday, following meetings in Washington from the previous week. They were informed that reaching a preliminary technical agreement appeared imminent, according to earlier reports by Bloomberg News.
Japan’s stance
Japanese Prime Minister Shigeru Ishiba stated that the nation is ready for any potential tariff outcomes. During an appearance on Fuji TV’s "Sunday News The Prime," he emphasized that Japan—also a key automobile manufacturing hub aiming to dodge Trump-era tariffs—is prepared to "take a strong stance" in safeguarding its own interests and preparing thoroughly for all conceivable circumstances.
The Cambodian government announced on Friday via a statement that it has reached a framework agreement with the United States, which is expected to be made public shortly, reaffirming their commitment to maintain close cooperation moving forward. With a proposed retaliatory tariff rate of 49%, Cambodia ranked high among countries affected under Trump's trade actions. As a major supplier of garments and shoes to America, Cambodia holds significant position as an export hub in Southeast Asia.
Indonesia has expressed optimism about being near an agreement on a "groundbreaking" trade pact with the United States last week, covering areas such as vital minerals, energy, defense collaboration, and market entry before the approaching customs fee cutoff date, stated the country's lead negotiator.
In a final attempt to prevent the United States from imposing a 36% tariff on Thai exports, Thailand has proposed granting expanded market entry for American agricultural and manufactured products, as well as boosting imports of U.S. energy and Boeing aircraft.