Washington, D.C. – U.S. Treasury Secretary Scott Bessent indicated Friday that the administration is aiming for a Labor Day timeframe to finalize key trade agreements, offering a more flexible target than the previously cited July 9 deadline tied to reciprocal tariffs. Speaking on Fox Business, Bessent highlighted the ongoing efforts to renegotiate terms with numerous global partners.
The United States is currently engaged in trade discussions with 18 countries deemed “important trading partners,” according to Bessent. The administration’s goal is to successfully conclude agreements with 10 to 12 of these nations by early September.
While significant progress has been made, particularly with the United Kingdom and China, Bessent suggested that the complexities of international negotiations necessitate a realistic timeline. “With all things, they get done in the end. You have to put on a deadline,” Bessent said, acknowledging that such processes in Washington rarely conclude significantly ahead of schedule.
A notable recent development involves the flow of rare earth minerals from China to the United States. Bessent confirmed that following a phone call between President Trump and Chinese President Xi Jinping, and subsequent meetings between their teams in London, an agreement was reached to address previous slowdowns in these exports. China had earlier in the day announced it would approve the export of rare earth minerals, which are critical for various U.S. industries. Bessent stated he was confident the minerals would now “flow” as agreed, noting they “were not flowing as fast as previously agreed.” This breakthrough follows earlier discussions in Geneva in May, which set a framework for implementing a trade truce.
The backdrop for these negotiations is the set of “massive reciprocal tariff levels” announced on April 2, 2025, a date President Trump termed “Liberation Day.” These tariffs included a baseline duty on most imports, with higher country-specific rates imposed on nations with significant trade deficits with the U.S. A 90-day pause on the higher reciprocal tariffs, which began around April 9, is set to expire on July 9, creating urgency for ongoing talks.
Bessent underscored the administration’s stance regarding countries that do not reach an agreement. He stated that President Trump is prepared to revert to the April 2 reciprocal tariff levels for any nation that fails to finalize a trade deal.
The status of trade negotiations and the potential impact of the expiring tariff pause have been closely watched by financial markets and lawmakers alike. Bessent’s comments provide a clearer picture of the administration’s expectations for the timeline of these critical trade discussions.
