Trump, Bessent Diverge on Deals' Likelihood Ahead of July 9
Treasury Secretary Scott Bessent, on Bloomberg Television on June 30, didn't predict how many deals would be announced with the 18 largest trading partners of the U.S. before July 9. However, he said that countries "are coming in with offers" that long-time staff negotiators "can't believe," because they're so good.
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"There's going to be a flurry going into the final week, as the pressure increases," he said.
While Bessent had recently said that countries that are negotiating in good faith would not face Liberation Day tariffs on July 9, he said that it will be the president's decision.
"We have countries that are negotiating in good faith, but they should be aware, if we can't get across the line because they're being recalcitrant, then we could spring back to the April 2 levels," he said. "I hope that won't have to happen."
Bessent was speaking after a Fox Business interview that aired June 29, but was filmed a few days earlier, with President Donald Trump, who said it would be "no big deal" to extend the pause on Liberation Day tariffs, but said rather than make deals, he'd prefer to send out letters to countries about what tariffs their exports will face in the U.S.
He excluded China, India and the U.K. from this description, saying they either had deals or "pretty much" have a deal, in India's case.
"I'd rather just send them a letter, very fair letter, saying, congratulations, we're going to allow you to trade in the United States of America. You're going to pay a 25% tariff, or 20% or 40[%] or 50%, I would rather do that." Another time he gave the examples 10%, 25%, 35% and 50%.
He said he will send these letters out sometime before July 9, and the rates will be based on the trade deficit. "We'll look at how a country treats us. Are they good? Are they not so good? Some countries, we don't care. We'll, you know, we'll just send a high number out," he said.
When the letter is sent, he said, "that's the end of the trade deal."
"I could send one to Japan: Dear Mr. Japan, here's the story. You're going to pay a 25% tariff on new cars, you know?"
He said that Japan has a major trade surplus with the U.S., and if they "take a lot of oil" or a "lot of other things" that would reduce it.
In a social media post on June 30, Trump again complained about Japan. "To show people how spoiled Countries have become with respect to the United States of America, and I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage," he wrote. "In other words, we’ll just be sending them a letter, and we love having them as a Trading Partner for many years to come." On April 2, the administration declared a 24% tariff for Japanese goods, due to the trade deficit. However, the largest proportion of the goods trade deficit with Japan is in cars and car parts, and that tariff is 25%.
Host Maria Bartiromo asked Trump if the deals would be done before an appeal is over on the lawfulness of the emergency tariffs. "The words of this [law] are so beautiful, they were meant for it," Trump argued, but said if judges decide that wasn't the right law, there are "very good alternatives."
But, he said, if judges didn't allow tariffs from those other avenues, "we would fall prey to other countries destroying us. If they do tariffs on us, we'll do tariffs on them."
Bartiromo asked him about his decision to stop talking to Canada, unless they dropped the digital services tax. Canada then did reverse course on the law, and talks have resumed.
"USMCA is no good and they cheat," Trump complained, referring to over-quota tariff rates on dairy. He said Canada takes advantage of the U.S.
He then said, "Hopefully we'll be fine with Canada. I love Canada. Frankly, Canada should be the 51st thing. Okay? It really should, because Canada relies entirely on the United States."