Bessent Warns: US Tariffs Could Snap Back to 50% as July 9 Deadline Looms

US Treasury Secretary Scott Bessent issued a stark warning Monday: even countries negotiating in good faith may still face sharply higher tariffs starting July 9, unless President Donald Trump grants last-minute extensions.

In a Bloomberg TV interview, Bessent cautioned that the current 10% tariff rate could jump to between 11% and 50% — the levels originally announced by Trump on April 2 — if deals aren’t finalized in time.

“We have countries that are negotiating in good faith,” Bessent said, “but if we can’t get across the line… we could spring back to the April 2 levels.”

A Chaotic Final Week Ahead

Bessent predicted a “flurry” of trade agreements in the final stretch before the deadline. Still, he made clear that extensions or exemptions would be at the President’s discretion, not his own.

The market is bracing for volatility as the fate of key US trading partners hangs in the balance. Countries from Asia to Europe are scrambling to secure last-minute deals to avoid the tariff snapback.

Meanwhile, Bessent confirmed that the administration remains confident in passing its sweeping tax bill by July 4, and expects progress on stablecoin legislation by mid-July, which he claims will create additional demand for US Treasuries.

In other remarks, he said:

“I’ll do whatever the President wants,” when asked about Fed Chair speculation, but added, “I have the best job in Washington.”
The best time for US debt issuance was in 2021–2022, hinting at regrets over timing.
US Chicago PMI came in at 40.4, missing the 42.9 forecast.