US may extend tariff suspension for willing trade partners

The United States may extend the current suspension of tariffs beyond the July 9 deadline for countries that are actively and sincerely engaged in trade negotiations.

Treasury Secretary Scott Bessent announced the potential extension just one day after a preliminary trade agreement was reached between the US and China.

Bessent emphasized that the 90-day suspension period, originally set by President Donald Trump, could be prolonged for key trading partners, provided they demonstrate a genuine commitment to reaching a deal. “If a country isn’t negotiating in good faith, we won’t keep the door open,” Bessent stated during a hearing before the House Committee on Financial Affairs.

At present, the US is focused on reaching agreements with 18 strategic trade partners, including the European Union, which has been involved in complex and often slow-moving discussions about future trade relations.

Despite repeated claims from the Trump administration about imminent trade deals with several countries, the only formal agreement finalized so far has been with the United Kingdom. Meanwhile, the framework agreement recently announced with China still lacks publicly available details.

Commerce Secretary Howard Lutnick echoed a cautious optimism regarding progress with the EU. However, he acknowledged significant challenges, citing the bloc’s fragmented leadership as a major obstacle. “Europe has been particularly difficult in these talks,” Lutnick said. “We had to threaten 50% tariffs on all products just to get a serious offer on the table.”