Washington: US tariffs are scheduled to take effect on August 1 unless trading partners from Taiwan to the European Union reach agreements with Washington, Treasury Secretary Scott Bessent announced.

According to TRTworld.com, Bessent indicated that the tariff rates would return to the levels announced by President Donald Trump on April 2, prior to their suspension to allow for trade negotiations. The deadline for these agreements was set for July 9. Bessent reiterated Trump’s comments made on Air Force One, emphasizing the August 1 timeline for the tariffs to begin.

The Trump administration has already reached agreements with the United Kingdom and Vietnam, and a temporary reduction in tariffs between Washington and Beijing has been established. Bessent mentioned that the administration is close to several other deals and expects significant announcements soon, though he declined to specify which countries are involved.

Trump highlighted that sending tariff notices is a simpler approach than engaging in complex negotiations with multiple countries. Bessent countered criticisms that the administration is using threats instead of negotiations, clarifying that August 1 is not a new deadline but rather the date when the tariffs will take effect unless agreements are reached.

The European Union and US negotiators are engaged in ongoing talks, with France’s finance minister expressing optimism about reaching a deal soon. However, other countries, such as Japan and BRICS nations, have voiced concerns about the impact of the tariffs, with Japan’s Prime Minister Shigeru Ishiba stating his reluctance to compromise and BRICS leaders warning about potential risks to global trade.

Addressing concerns about the tariffs leading to US inflation, Bessent differentiated between inflation and one-time price adjustments, suggesting that the tariffs would not result in generalized inflationary effects.