‘Liberation Day’ tariffs take effect in August if trade talks fail, Lutnick says – Washington Examiner
Commerce Secretary Howard Lutnick announced that the “Liberation Day” tariffs scheduled for implementation on April 2 will instead take effect on August 1, contingent upon the success of ongoing trade negotiations with other countries. These tariffs, currently paused until July 9, will be enforced if countries fail to agree on new trade deals with the United States. During a press conference with President Donald Trump, Lutnick expressed optimism about reaching agreements before the deadline, indicating that many countries might be able to finalize deals or at least clarify the rates they would face otherwise. Treasury secretary Scott Bessent echoed this sentiment, suggesting that the governance is close to multiple trade agreements.He also reiterated that the period before the tariffs take effect is not a new deadline but rather a clear indication of when the tariffs will be enforced, allowing countries a chance to expedite negotiations.
‘Liberation Day’ tariffs take effect in August if trade talks fail, Lutnick says
Commerce Secretary Howard Lutnick revealed that the April 2 “Liberation Day” tariffs, which have been paused until July 9, won’t go into effect until early August.
Lutnick, appearing alongside President Donald Trump on Sunday in New Jersey, told reporters that if countries fail to reach a trade deal with the United States, they would face the increased levies on Aug. 1, nearly a month after the pause expires on Wednesday.
“The tariffs go into effect Aug. 1. But the president is setting the rates and the deals right now,” Lutnick explained.
Shortly before Trump’s commerce secretary clarified the tariff plan, the president projected confidence that “most” countries will be “done” by July 9 anyway, either through a trade deal or a letter outlining the increased rates in the event a deal is unachievable.
That assessment follows similar optimism from Treasury Secretary Scott Bessent, who said earlier on Sunday that the Trump administration is “close to several deals.”
“As always, there’s a lot of foot-dragging on the other side,” Bessent said. “I would expect to see several big announcements over the next couple of days.”
TARIFF RATES TO RETURN TO APRIL LEVELS IF AUGUST TRADE DEAL DEADLINE UNMET, BESSENT SAYS
Bessent also insisted that the month-long period between when the tariff rates are outlined to countries and when they actually take effect is not a new deadline from the administration to reach more trade deals.
“It’s not a new deadline. 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 said.
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