Politics

Bessent Says Tariffs Will ‘Boomerang Back’ to 49% Without Trade Deals

By Jake Beardslee · July 6, 2025

With a critical deadline approaching, Treasury Secretary Scott Bessent says the U.S. will reinstate steep tariffs on global imports if trade agreements aren’t reached in time. The warning comes as the Trump administration rushes to finalize deals before an August 1 cutoff that would end a current tariff pause.

In an appearance on CNN’s State of the Union, Bessent stated that tariffs would “revert to April 2 levels”—ranging from 20% to 49%—if agreements are not secured. Currently, those tariffs sit at a reduced baseline of 10%.

The administration is preparing to send warning letters to multiple countries by Monday. “If you don’t move things along then on August 1 you will boomerang back to your April 2 tariff level,” Bessent said, adding, “I think we’re going to see a lot of deals very quickly.”

President Donald Trump echoed the urgency during a briefing aboard Air Force One on Friday. He told reporters that about 12 countries will be receiving letters, though he did not disclose which ones. Trump emphasized his preference for written communication over negotiations, noting that while he has made exceptions for countries like the United Kingdom and Vietnam, he generally sees letters as more efficient.

“I think a simple tariff is simpler than, better than sitting down and working 15 different things,” Trump explained. “Much easier to send a letter saying, ‘Listen, we know we have a certain deficit… and if this is what you have to pay if you wanna do business to the United States.’”