Many governments have begun rushing to strike trade agreements with the United States as they try to avoid a new set of harsh tariffs from President Trump, which are set to begin on July 9.
These efforts, however, have been facing delays due to Mr. Trump’s repeated warnings that more tariffs might still be introduced even if agreements are signed.
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It was on April 8 that Mr. Trump announced what he called “reciprocal tariffs,” claiming they were designed to respond to what he believed were unfair trade actions from other countries. At the time, he decided to hold off on applying them for 90 days to give foreign governments an opportunity to negotiate.
While some officials from his administration have hinted that the deadline might be extended, the president himself appears ready to apply tariffs without delay if he sees resistance from other nations.
Treasury Secretary Scott Bessent stated during an interview with Bloomberg Television on Monday that although some countries are making efforts to negotiate properly, they should understand the risk involved if they refuse to meet U.S. terms.
He made it clear that talks could collapse and cause tariffs to return to the levels that were in place earlier in April.
Concerns Rise as Tariff Threats Increase
Countries like India, Vietnam, Japan, Malaysia, and members of the European Union have been putting in work to reach trade deals that would ease tensions and keep them safe from high U.S. import duties.
Yet at the same time, the Trump administration has kept moving forward with steps to apply even more tariffs, this time focused on industries it considers important for national security. This has left foreign leaders feeling uncertain and alarmed about what lies ahead.
The Department of Commerce is still carrying out trade investigations related to items such as lumber, copper, timber, and other minerals viewed as essential. These investigations are expected to be completed soon and handed over to the White House.
If these imports are found to present a threat to national security, then the president could go ahead and impose tariffs on them within the next few weeks.
Additional investigations involving semiconductors, pharmaceutical supplies, and electronic equipment are also underway and might be concluded in time to support fresh tariffs as early as next month.
According to Mr. Bessent, the tariffs that apply to items like lumber are being handled separately from the set of reciprocal tariffs that were revealed in April. He explained that these do not fall under the current negotiation schedule, meaning they are moving ahead on a different path.
This group of tariffs, which would be applied under Section 232 of the Trade Expansion Act of 1962, has the goal of increasing domestic production for items seen as essential. The U.S. government wants to reduce its dependence on foreign producers during times of conflict or when supplies become limited.
