On Monday, June 30, US Treasury Secretary Scott Bessent warned that even if countries negotiate with sincerity leading up to the July 9 deadline for the temporary suspension of reciprocal tariffs, if no agreement is reached, these nations may still face significantly increased tariffs.
During an interview with Bloomberg TV on Monday, Bessent indicated that he anticipates a “series” of trade agreements to emerge before the July 9 deadline, after which the 10% tariffs imposed by the US on goods from many countries will return to the levels of 11% to 50% announced by President Trump on April 2.
“Some countries are negotiating in good faith, but they should be aware that if their stubborn positions prevent us from reaching an agreement, we may go back to the (tariff) levels of April 2. I hope this situation does not come to pass,” Bessent stated.
Bessent had previously suggested postponing negotiations. However, on Monday, he mentioned that any potential tariff delays would be decided by President Trump.
President Trump stated in an interview aired on Sunday that he does not intend to extend the July 9 tariff deadline set for reaching agreements with various countries. “I don’t think I need to,” he told Fox News’ Maria Bartiromo. However, he added, “I could, it’s not a big deal.”
From Canada to Japan, countries are striving to finalize all agreements in the final week leading up to the deadline.
Later on Sunday, Canada rescinded its digital service tax on US tech companies such as Apple, Amazon, and Alphabet, just hours before the tax was set to take effect. Following Trump’s announcement last Friday, stating that as long as the digital service tax exists, the US will end all trade negotiations with Canada.
With the cancellation of the digital tax in Canada, trade negotiations between the US and Canada have resumed. According to a statement released by the Canadian Finance Ministry on Sunday, Trump and Canadian Prime Minister Mark Carney are currently aiming to reach a trade agreement by July 21.
Kevin Hassett, Chairman of the US National Economic Council, told CNBC on Monday, “I’m pleased to see Canada cancel the digital sales tax, which means we don’t have to engage in such complicated tit-for-tat on tax law.”
He said, “One can foresee that countries imposing digital sales taxes in the future will face the wrath of Jameson Greer, the US Trade Representative, as this is unfair trade practice.”
Hassett hinted that the Trump administration prioritizes the passage of the “Big and Beautiful Tax Cut Bill.”
“Once the tax cut bill is passed, I believe the Oval Office will have a marathon meeting where we will review with the president one by one, then make final decisions to determine (countries’) tariff rates,” Hassett said.
After a weekend of negotiations, the US Senate is holding a marathon voting session on the “Big and Beautiful Act.”
Trump hopes to sign it into law before Independence Day on July 4.