Treasury Secretary Scott Bessent said that the deadline for reciprocal tariffs is being pushed back from July 9 to August 1. Bessent said that countries will “get a letter saying that if we have not reached an agreement, then you will go back to the April 2 tariff level.” Following Bessent’s remarks, President Trump posted on social media copies of letters going to various countries telling them that his Administration would be imposing tariff rates between 25% and 40% effective August 1st if these nations do not conclude trade deals with the U.S. and warning any retaliation will be met with even higher tariffs. Trump also said that he would impose an additional 10% tariff on any countries aligning themselves with the “anti-American policies” of the Brazil, Russia, India, China, and South Africa (BRICS) Group of developing nations.
Notably, the new August 1st deadline falls between the July 21st deadline the Trump Administration set for the U.S. and Canada to conclude a trade deal and the August 12th deadline when the Administration’s 90-day trade truce with China expires. These developments came as the JPMorgan Chase Institute released an analysis finding that midsize US firms can expect to pay $2,080 more per employee at current tariff rates, amounting to a 3% payroll hike. The analysis also says that if tariffs revert to “Liberation Day” levels, projected costs will more than double, driven by higher levies on China and other Asian nations.