US Treasury Secretary Bessent Threatens Tariffs at 'Reciprocal' Level if No Trade Agreement Reached

US Treasury Secretary Bessent Threatens Tariffs at 'Reciprocal' Level if No Trade Agreement Reached

US Treasury Secretary Scott Bessent issued a stark warning over the weekend, stating that the United States may escalate tariffs to "reciprocal" levels if trade negotiations with certain countries do not progress in good faith. In an interview with CNN, Bessent emphasized that President Donald Trump had clearly put international trade partners "on notice" that any failure to engage in fair negotiations would result in the reimposition of tariffs at the same high rates seen on April 2.

Bessent explained, "If you do not negotiate in good faith, you will ratchet back up to your April 2 level," referring to the previously imposed tariff levels. The warning underscores the US administration's hardline approach to trade policy, which often uses tariffs as leverage to force countries into more favorable agreements for the US.

Additionally, Bessent mentioned that the US is actively working on trade agreements with 18 "significant" trading partners, but he did not provide details regarding the timeline for these agreements. While the exact dates for these deals remain unclear, the statement points to a busy period of trade negotiations as the US seeks to reshape its trade relationships globally.

These comments come amid growing concerns over the future of international trade, especially as the US attempts to balance its trade deficits and address long-standing economic imbalances. The potential use of reciprocal tariffs adds another layer of uncertainty to global trade markets, as countries around the world closely monitor the US’s next moves.