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The US says it will impose the largest tariffs it has threatened against countries that don’t negotiate “in good faith” in order to strike a more aggressive tone of trade talks.
Treasury Secretary Scott Bescent said tariff rates will return to the level announced on April 2 when President Donald Trump declared his intention to “liberate” him from the unfair trade system.
The Treasury Secretary told NBC that if “they are not negotiating in good faith,” they will receive a letter from Bescent, which outlines their maximum tariff rates.
“Some countries were 10%, but some were significantly higher,” he added. “If you don’t want to negotiate, we’ll go back to the April 2nd level.”
The tougher lines show just how fulfilled tariff negotiations are, showing what President Donald Trump has been proud recently that he has been in a hurry to negotiate with Washington.
Trump on April 2 said 10% collection would apply to almost all imports, but he also announced that he would wipe out “mutual” tariffs in retaliation for taxation on US exports.
Following last month’s announcement, US tariffs on Chinese products reached 145%. However, on Monday, the two countries signed a contract to reduce tariffs on each other’s goods for at least 90 days, with the US imposed on China this year falling to 30% and China falling to 10%.
The Southeast Asian export hub was hit by high taxation on April 2 when Trump claimed he would be free from the yoke of unfair trade restrictions. Cambodia was given a “mutual” rate of 49%, followed by Laos, 48%, and Vietnam, 46%.
Mexico and Canada, often withheld trade with Trump, dodged mutual tariffs. 25% of the duties remain for goods that do not comply with the terms of the 2020 USMCA trade agreement with the United States.
Earlier this month, Britain was the first country to sign a contract with Trump as it unleashed a trade war and ensured reduced tariffs on automobiles and steel, but did not reverse the 10% taxation applied to most goods.
Bessent said on Sunday that Walmart “eats some of the tariffs” after warning retailers would raise prices for taxation.
The Treasury Secretary said he spoke to Walmart’s CEO over the weekend. Trump criticised the company on social media as he contemplated price increases. Walmart declined to comment on Bescent’s comments, but said over the weekend it “has always worked to keep prices as low as possible.”
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Bescent also cites concerns about Moody’s decision on Friday, cutting US credit ratings from the top-notch triple-A level to AA1, citing rising government debt and widening fiscal deficits.
“Moody’s is an indicator of lagging behind, and I think that’s what everyone thinks about credit institutions,” Bescent said.
“That’s the spending we’ve seen over the past four years with the Biden administration,” added Bescent. “And we’re determined to beat spending and grow our economy.”
Late Sunday night after Bessent spoke, the House Budget Committee failed to approve the panel on Friday to clear the path to a massive bill supported by Trump and cut tax cuts and spending. The vote sets the stage for a dash in the lower chamber of Congress to approve the law early this week and send it to the Senate.
Additional reports by James Politi, Antoine Gala and Gregory Meyer
