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American Focus > Blog > Economy > US threatens tariffs ‘boomerang’ next month if no deals are struck
Economy

US threatens tariffs ‘boomerang’ next month if no deals are struck

Last updated: July 6, 2025 11:00 am
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US threatens tariffs ‘boomerang’ next month if no deals are struck
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Scott Bessent, a key player in the US Treasury department, has issued a warning regarding the potential consequences of US tariffs on imports from certain countries. According to Bessent, if these countries do not offer concessions and strike deals with Washington soon, the tariffs could revert to the steep levels set by Donald Trump in April. The 90-day pause in higher levies is coming to an end, leaving room for negotiations between the US and its major commercial partners.

Despite striking trade pacts with the UK, China, and Vietnam during this period, Trump’s administration has left other global economies, including top US allies like the EU, Japan, and South Korea, in a state of uncertainty. Bessent revealed that Trump may implement higher tariffs on imports from countries that fail to reach agreements with the US starting next month.

In a recent interview with CNN, Bessent emphasized the importance of reaching deals with trading partners to avoid the boomerang effect of increased tariffs. He hinted at a significant number of letters being sent out to smaller countries with minimal US trade, setting their tariffs at 10%. Additionally, White House council of economic advisers chair Stephen Miran expressed optimism about negotiations with Europe and India, indicating that access to the American market is contingent on meeting certain criteria.

See also  German bonds rise with euro as investors head for Europe’s haven

The initial pause on higher levies three months ago was met with skepticism from investors worried about the impact of protectionist policies on economic growth and inflation. However, the markets responded positively to Trump’s decision to reconsider the tariffs. As the trade talks unfold in the coming weeks, investors will be closely monitoring the outcome and adjusting to the fluctuating trade policies under the current administration.

With the passage of his signature domestic policy bill focusing on tax cuts, spending reductions, and immigration crackdowns, Trump’s administration is now turning its attention back to trade and tariffs. Stay informed on the latest updates and analysis by signing up for the White House Watch newsletter today.

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