On Sunday, May 18, the United States Treasury Secretary Scott Bessent stated that if countries fail to reach a trade agreement with the United States within the 90-day suspension period, tariff rates will quickly return to “equivalent” levels.
Bessent made the remarks on CNN’s “State of the Union with Jake Tapper” program, emphasizing President Trump’s notification to take action if serious negotiations are not conducted, indicating a possible return to tariff rates as of April 2.
The focus for the United States at present is reaching trade agreements with 18 “significant” trading partners, as mentioned by Bessent. He did not disclose when the tariff rates would revert to “equivalent” levels, but emphasized the importance of finalizing agreements with key partners.
Regarding trade relationships of lesser scale, Bessent mentioned the consideration of regional agreements tailored to specific areas such as Central America and Africa, indicating a diversified approach in future trade dealings.
Trump announced a global tariff plan on April 2, granting a 90-day waiver on reciprocal tariffs to countries other than China for negotiating with the United States. While exempt from equal tariffs during this period, countries are still subjected to a 10% benchmark tariff.
In a business roundtable event in Abu Dhabi, Trump reiterated the limited time left for countries to reach trade agreements with the United States. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are expected to send letters to trading partners within the next two to three weeks detailing tariff obligations.
The Trump administration has been engaged in negotiations with the European Union, Japan, India, South Korea, and declared a trade agreement with the United Kingdom on May 8, the first country to reach such an agreement following the global tariff announcement.
On May 11, the U.S.-China trade delegation concluded tariff negotiations in Geneva, agreeing to lower tariffs for both sides over 90 days with a decrease of 15%. China’s tariffs on U.S. goods were reduced to 10%, while the U.S. tariffs on Chinese goods lowered to 30% (including a 20% tariff related to fentanyl issues).
In response to inquiries about the impact and uncertainties brought by Trump’s tariffs, Bessent defended the government’s negotiation strategy as a tactical uncertainty to prevent exploitation during discussions, citing plans for mutual benefits post-negotiation.
When asked about the effect of tariffs on small businesses relying on Chinese manufacturing, Bessent assured a maintenance of lower tariff levels for trade discussions involving products of these enterprises.
Additionally, American small businesses face tariff risks and uncertain growth prospects. Retail giant Walmart warned of price increases last week, prompting a response from Trump on Truth Social, requesting Walmart to shoulder the tariff burdens independently.
Bessent confirmed direct communication with Walmart’s CEO, Doug McMillon, noting that Walmart would bear a portion of the tariffs with a potential shift of some costs to consumers.