Squawk Pod Treasury Secretary Scott Bessent & New York City Mayor Eric Adams 7/7/25
Treasury Secretary Scott Bessent Warns of Tariff Deadlines and Trade Deals Looming
Treasury Secretary Scott Bessent warns that countries not reaching trade deals with the U.S. by August 1st will see tariffs revert to the higher levels announced in April.
He highlights a surge in negotiation activity after this warning, with many new offers and proposals arriving, signaling busy days ahead. "My mailbox was full last night with a lot of new offers, a lot of new proposals," he says.
Bessent emphasizes that President Trump prioritizes the quality of trade deals over quantity and indicates that multiple trade-related announcements are expected within 48 hours.
The Secretary clarifies tariffs like the 20% on Vietnam, explaining it is an overall tariff rate superseding previous duties, not an additional charge on top. He also discusses how tariff revenue can help reduce the deficit and the administration's focus on trade, tax, and deregulation as a three-legged economic strategy.
Three-Legged Economic Stool
- The Trump economic agenda relies on trade, tax, and deregulation as a three-legged stool.
- Accelerating economic growth without inflation is crucial to reducing the deficit and debt-to-GDP ratio.
Tariff Threats Spur Negotiations
- Threatening tariff boomerangs pushed countries to submit new trade proposals.
- Negotiations intensified right before the August 1st deadline to avoid reversion to higher April tariffs.