Treasury Secretary Scott Bessent has had no shortage of midnight reading lately. “We’ve had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals,” Bessent told CNBC. He didn’t hide what that means: “It’s going to be a busy couple of days.”
In the next 48 hours, the US is set to drop several trade announcements. These come as President Trump’s self-imposed July 9 deadline looms. It’s a final push to nail down deals that have stalled for months.
Letters in the post
The plan is simple enough. Dozens of letters are going out to countries dragging their feet. Trump confirmed as many as 15 would hit inboxes starting Monday. Some would follow on Tuesday and Wednesday. “Letters, and/or Deals, with various Countries from around the World” would start landing at midnight Monday, he wrote on social media.
Kevin Hassett, who heads the National Economic Council, explained the thinking on CBS’s Face the Nation: “Our smaller trading partners could become much bigger trading partners. And that’s, I think, one of the reasons why countries are racing to set deals up with us ahead of the deadline.”
Tariffs locked and loaded
The threat hanging over these letters is clear enough. Fail to sign, and you’re looking at new tariffs on 1 August. “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff,” Trump posted, singling out the bloc of Brazil, Russia, India, China, South Africa, and new members like Iran and Egypt.
Commerce Secretary Howard Lutnick added that the 1 August deadline isn’t just bluster. If you’re not in line by Wednesday, you could be paying up.
Who’s in the firing line?
Bessent told CNN that about 100 letters will target smaller nations “where we don’t have very much trade” and where tariffs sit at the baseline 10%. The bigger target is the deficit heavyweights. “There are 18 important trading relationships that account for 95% of our deficit, and those are the ones we’re concentrating on,” he said.
Asked if 1 August is the final word, Bessent dodged: “We’ll see. I’m not going to give away the playbook.”
Stephen Miran, chair of the White House Council of Economic Advisers, suggested countries negotiating in good faith might earn extra time. “Sort of, get the date rolled,” he told CBS.
US-Vietnam deal sets the tone
Last week, Trump unveiled a new agreement with Vietnam. Under this deal, Vietnamese goods will face a 20% tariff. If companies try to reroute exports to dodge duties, a 40% tariff on “transshipping” kicks in. But the flip side is zero tariffs for American exports into Vietnam. In Trump’s words, Vietnam will “OPEN THEIR MARKET TO THE UNITED STATES.”
It’s a climbdown from the 46% tax he floated in April. But it’s still steep enough to show he means business.
Not everyone gets a letter
Not all countries will see one of these warning letters. Canada, for one, won’t. After fresh talks, US ambassador Pete Hoekstra told CTV News that Ottawa is negotiating directly. “We’re going to have a deal that’s articulated,” he said. Still, even Canada could face tariffs if talks break down. Prime Minister Mark Carney has said if there’s no deal by 21 July, Ottawa will hit back with its own measures.
What makes this round different is how public and forceful it all is. Trump’s last tariff threat in April spooked markets before it was paused for 90 days. With that freeze expiring this Wednesday, countries and investors are watching every word.
Bessent, for his part, says, “I think we’re going to see a lot of deals very quickly.” But with clock ticking and no clear list of who’s playing ball, there’s still plenty that could knock this trade push off course.
(with inputs from Reuters)
In the next 48 hours, the US is set to drop several trade announcements. These come as President Trump’s self-imposed July 9 deadline looms. It’s a final push to nail down deals that have stalled for months.
Letters in the post
The plan is simple enough. Dozens of letters are going out to countries dragging their feet. Trump confirmed as many as 15 would hit inboxes starting Monday. Some would follow on Tuesday and Wednesday. “Letters, and/or Deals, with various Countries from around the World” would start landing at midnight Monday, he wrote on social media.
Kevin Hassett, who heads the National Economic Council, explained the thinking on CBS’s Face the Nation: “Our smaller trading partners could become much bigger trading partners. And that’s, I think, one of the reasons why countries are racing to set deals up with us ahead of the deadline.”
Tariffs locked and loaded
The threat hanging over these letters is clear enough. Fail to sign, and you’re looking at new tariffs on 1 August. “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff,” Trump posted, singling out the bloc of Brazil, Russia, India, China, South Africa, and new members like Iran and Egypt.
Commerce Secretary Howard Lutnick added that the 1 August deadline isn’t just bluster. If you’re not in line by Wednesday, you could be paying up.
Who’s in the firing line?
Bessent told CNN that about 100 letters will target smaller nations “where we don’t have very much trade” and where tariffs sit at the baseline 10%. The bigger target is the deficit heavyweights. “There are 18 important trading relationships that account for 95% of our deficit, and those are the ones we’re concentrating on,” he said.
Asked if 1 August is the final word, Bessent dodged: “We’ll see. I’m not going to give away the playbook.”
Stephen Miran, chair of the White House Council of Economic Advisers, suggested countries negotiating in good faith might earn extra time. “Sort of, get the date rolled,” he told CBS.
US-Vietnam deal sets the tone
Last week, Trump unveiled a new agreement with Vietnam. Under this deal, Vietnamese goods will face a 20% tariff. If companies try to reroute exports to dodge duties, a 40% tariff on “transshipping” kicks in. But the flip side is zero tariffs for American exports into Vietnam. In Trump’s words, Vietnam will “OPEN THEIR MARKET TO THE UNITED STATES.”
It’s a climbdown from the 46% tax he floated in April. But it’s still steep enough to show he means business.
Not everyone gets a letter
Not all countries will see one of these warning letters. Canada, for one, won’t. After fresh talks, US ambassador Pete Hoekstra told CTV News that Ottawa is negotiating directly. “We’re going to have a deal that’s articulated,” he said. Still, even Canada could face tariffs if talks break down. Prime Minister Mark Carney has said if there’s no deal by 21 July, Ottawa will hit back with its own measures.
What makes this round different is how public and forceful it all is. Trump’s last tariff threat in April spooked markets before it was paused for 90 days. With that freeze expiring this Wednesday, countries and investors are watching every word.
Bessent, for his part, says, “I think we’re going to see a lot of deals very quickly.” But with clock ticking and no clear list of who’s playing ball, there’s still plenty that could knock this trade push off course.
(with inputs from Reuters)
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