The United States is close to clinching several trade deals ahead of a July 9 deadline when higher tariffs kick in, US Treasury Secretary Scott Bessent says, predicting several big announcements in coming days.
Bessent told CNN that US President Donald Trump’s administration would also send out letters to 100 smaller countries with whom the US does not have much trade, notifying them that they would face higher tariff rates first set on April 2 and then suspended until July 9.
“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” Bessent said.
Bessent denied that August 1 was a new deadline for negotiations.
“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 told CNN.
The US Treasury chief said the administration was focused on 18 important trading partners that account for 95 per cent of the US trade deficit.
But he said there had been “a lot of foot-dragging” among countries in getting closure on a trade deal.
He declined to name countries that were close to a trade agreement, adding, “because I don’t want to let them off the hook”.
Trump has repeatedly said India is close to signing a deal and expressed hope that an agreement could be reached with the European Union, while casting doubt on a deal with Japan.
Thailand is aiming to reduce its $US46 billion ($A70 billion) trade surplus by 70 per cent within five years in a bid to avert steep US tariffs, Finance Minister Pichai Chunhavajira told Bloomberg News on Sunday.
The US has threatened to impose a 36 per cent levy on imports from Thailand if a reduction cannot be negotiated before July 9.
Thailand is pushing for a best-case rate of 10 per cent, Pichai told Bloomberg, adding that even a range of between 10 per cent and 20 per cent would be acceptable.
Pichai expects to submit the revised offer before July 9, the report said.
Since taking office, the US president has set off global trade turmoil that has up-ended financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.
Trump on April 2 announced a 10 per cent base tariff rate and additional amounts for most countries, some ranging as high as 50 per cent.
The news roiled financial markets, prompting Trump to suspend all but the 10 per cent base rate for 90 days to allow more time for negotiations to secure deals but the process has proven more challenging than expected.
That period ends on July 9, although Trump early on Friday said the tariffs could be even higher – ranging up to 70 per cent – with most set to go into effect on August 1.
Bessent, asked about the 70 per cent rate, referred back to the April 2 list but that did not include such high rates.
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