Treasury Secretary Scott Bessent announced Sunday that U.S. tariffs will return to their April 2 levels if ongoing trade negotiations with foreign partners fail to produce a new agreement by August 1.
Speaking on “Fox News Sunday” with Shannon Bream, Bessent said several trade deals are close to completion and described the current phase of talks as the “home stretch.”
“Is it fair to say there’s a bit of a pause on the July 9th deadline for some of these trading partners?” Bream asked.
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“I don’t think it’s a bit of a pause because I think what’s happened is there’s a lot of congestion going into the home stretch and, as a part of the trade team, what’s great about having President Trump on our side is he’s created maximum leverage,” Bessent said.
“By telling our trading partners that they could boomerang back to the April 2nd date, I think it’s really going to move things along over the next couple of days and weeks,” he added.
The April 2 tariff schedule, originally implemented under President Donald Trump, featured increased duties on a range of goods from countries that failed to reach bilateral agreements deemed favorable to the United States.
The potential reversion is being used as leverage to encourage trading partners to finalize terms before the August deadline.
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The announcement comes amid broader economic maneuvering by the Trump administration and renewed speculation about Bessent’s role within it.
In recent days, rumors have intensified that President Trump may replace Federal Reserve Chairman Jerome Powell and possibly appoint Bessent to the position.
Last week, President Trump publicly called for Powell’s resignation after the head of the Federal Housing Finance Agency (FHFA) accused Powell of providing “deceptive” testimony to Congress.
The statement marked another escalation in the ongoing dispute between Trump and Powell, a feud that has drawn national attention over monetary policy and economic leadership.
During Sunday’s interview, Bream questioned Bessent about Trump’s public criticism of Powell and whether it was an effective approach.
“I’m a basketball fan. And in basketball there are two schools of working the refs. There’s the Bobby Knight school and the Dean Smith school. And, obviously, President Trump’s more in the Bobby Knight school. And I will tell you, Bobby Knight won three national championships. Dean Smith only won two. So, working the refs seems to be effective,” Bessent said.
Bessent did not confirm whether he was being considered to replace Powell.
Last week, he offered a similar noncommittal response during an interview with Fox News’ Maria Bartiromo.
“We have a lot of great candidates for the Federal Reserve. I think I have the best job in Washington. I get to interact with the president. The Cabinet that he’s chosen is fantastic, and being part of that Cabinet is the dream of a lifetime for me. But I will go where the president thinks that I am best suited,” Bessent said.
The Biden-appointed Powell, whose term as Fed Chair is set to expire in 2026, has faced sharp criticism from President Trump and his allies over monetary policy decisions, inflation management, and central bank transparency.
With economic negotiations intensifying on multiple fronts — from trade policy to interest rates — the direction of the Federal Reserve remains a key question as President Trump continues reshaping top-level leadership during his second term.
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