^{Photo: France 24}

Treasury Secretary Scott Bessent confirmed Sunday that countries failing to strike new trade deals with the U.S. will face a sharp reinstatement of April 2 tariff levels starting August 1, signaling the end of President Donald Trump’s 90-day tariff pause and a return to more aggressive trade enforcement.

In an interview on CNN’s State of the Union, Bessent made it clear that the Trump administration is finalizing letters to be delivered to key trading partners, warning them of the imminent tariff reset.

“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1, you will boomerang back to your April 2 tariff level,” Bessent said.

No New Deadline, But a Firm Line Drawn

While Bessent rejected the idea that August 1 represents a new deadline, he emphasized that the date is now the firm implementation point for higher tariffs unless agreements are finalized.

“We are saying this is when it’s happening. If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice,” he added.

The tariffs in question—unveiled in early April—targeted a wide range of imports from more than a dozen major trading partners, including the European Union, China, Mexico, and South Korea. The original measures were paused for 90 days, creating a temporary window for bilateral negotiations. That pause is set to expire this Wednesday, sparking heightened anxiety among global investors and U.S. trade partners.

Impending Trade Letters and Financial Fallout

President Trump also spoke about the move late last week, stating that approximately a dozen letters will be sent on Monday, notifying countries of their individualized tariff rates that will take effect August 1.

“They’ll start to pay on August 1. The money will start to come into the United States on August 1, in pretty much all cases,” Trump told reporters on Friday.

The White House has not yet issued an official comment on Bessent’s remarks, but internal sources suggest the move is intended to exert final pressure on hesitant trading partners while projecting the administration’s tough stance on economic nationalism ahead of the election cycle.

Potential for Major Announcements This Week

Despite the looming threat of tariff escalation, Bessent hinted that diplomatic negotiations are nearing breakthroughs. He said the administration could unveil “several big announcements” in the coming days—potentially involving long-awaited trade deals with U.S. allies and high-volume trade nations.

“I would expect to see several big announcements over the next couple of days,” Bessent said, when asked whether any deals were close before the July 10 expiration of the current pause.

Analysts expect sectors like automobiles, agriculture, electronics, and raw materials to be most immediately impacted if tariffs are reinstated at April levels. U.S. companies dependent on global supply chains may face renewed cost pressures, with downstream effects on consumer prices and market volatility.

What’s Next?

The August 1 reinstatement marks a critical pivot in U.S. trade strategy. While negotiations are still in motion, the Trump administration appears intent on enforcing its tariff roadmap unless partners show flexibility.

As the clock ticks down, businesses and investors are bracing for a volatile July—hoping that diplomacy prevails, but preparing for a scenario where billions in trade revert to higher tax rates overnight.