Treasury Secretary Scott Bessent hints at extending tariff deadlines for countries engaged in “good faith” trade negotiations, signaling a potential shift in the Trump administration’s approach to global trade relations.
At a Glance
- Trump administration likely to extend the July 9 tariff deadline for nations actively negotiating trade deals
- Countries must demonstrate “good faith” in negotiations to qualify for extensions
- The US has identified 18 “important trading partners” for potential trade agreements
- Preliminary deals have been reached with the UK and China, with more expected soon
- Countries not participating in negotiations will face immediate implementation of tariffs
Tariff Extensions Likely for Cooperative Nations
Treasury Secretary Scott Bessent testified before Congress on Wednesday, revealing the Trump administration’s willingness to extend approaching tariff deadlines for countries actively engaged in trade negotiations. This marks a potential softening in the administration’s previously firm stance on tariff implementation. With key deadlines approaching in less than a month, Bessent’s comments provide crucial insight into how the administration plans to navigate its aggressive trade agenda while maintaining diplomatic relationships with key partners.
During his testimony, Bessent specifically highlighted the conditions under which extensions would be granted, emphasizing the importance of demonstrated effort from trading partners. “It is highly likely that [with] those countries … or trading blocs in the case of the EU, who are negotiating in good faith, we will roll the day forward to continue good faith negotiations. If someone is not negotiating, then we will not,” Bessent stated, drawing a clear line between cooperative and uncooperative nations in the administration’s approach to trade policy.
— Kevin Xu (@kevinsxu) June 8, 2025
Progress with Major Trading Partners
The Trump administration has identified what Bessent refers to as “18 important trading partners” currently engaged in negotiations. While most discussions remain confidential, the administration has publicly announced preliminary agreements with the United Kingdom and a framework agreement with China. These early successes suggest the administration’s aggressive approach may be yielding results, though many details remain unclear, particularly regarding the recently announced China framework.
“I would say, as I have repeatedly said, that there are 18 important trading partners,” Bessent explained during his congressional testimony, underscoring the scale and ambition of the administration’s trade agenda.
The Chinese framework represents a significant development, potentially reviving elements of a previous trade truce negotiated in Geneva. Under the earlier arrangement, China had reduced tariffs on most U.S. goods from 125% to 10%, with reciprocal lowering of U.S. duties. The new framework, however, would impose up to 55% tariffs on most Chinese exports, reflecting the administration’s continued tough stance despite the willingness to negotiate.
Broader Tariff Strategy and Deadlines
The negotiations take place against the backdrop of President Trump’s April 2 announcement of a 10% baseline tariff on most imports, referred to by the administration as “Liberation Day.” This announcement included customized tariff rates for various countries, with particularly stringent measures planned for the European Union – a 50% tariff paused until July 9. The administration also imposed 25% tariffs on imports from Canada and Mexico not covered by USMCA, 25% on foreign steel and aluminum, and 25% on most foreign-made vehicles.
Bessent’s comments represent a potential shift from previous administration statements which suggested extensions would only be granted once the “terms of an agreement” had been reached. This more flexible approach may provide breathing room for negotiations while maintaining pressure on trading partners to engage seriously with U.S. demands. For American businesses and consumers, the possibility of extended negotiations may delay the potential impacts of widespread tariffs on imported goods and services.
