U.S. Treasury Secretary Scott Bessent confirmed on Sunday that tariff rates will return to their previous “reciprocal” levels if trade agreements are not reached during the ongoing 90-day pause.
“President Trump has put them on notice that if you do not negotiate in good faith, you will ratchet back up to your April 2 level,” Bessent said, emphasizing the administration’s firm stance.
He identified 18 key trading partners as priorities for negotiations but did not specify a timeline for when tariffs might be reinstated at full rates.
On the economic front, Bessent downplayed concerns related to Moody’s recent downgrade of U.S. government debt, signaling confidence in the country’s fiscal management.
Addressing inflation fears, he described Walmart’s recent warning about potential price hikes as a “worst case scenario” after discussions with CEO Doug McMillon. This followed President Trump’s public criticism of Walmart on Saturday, where he urged the retailer to “eat the tariffs” rather than pass costs on to consumers.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING,” Trump posted on Truth Social.
Walmart had earlier cautioned that rising tariff-related costs could soon force price increases, also opting not to provide second-quarter profit guidance amid trade uncertainties.
In other comments, President Trump renewed his criticism of Federal Reserve Chairman Jerome Powell, urging the Fed to cut interest rates “sooner, rather than later.”
“Too Late Powell, a man legendary for being Too Late, will probably blow it again – But who knows???” Trump tweeted, expressing ongoing frustration with the Fed’s policy approach.
During a meeting with business leaders in the United Arab Emirates on Friday, Trump said the U.S. would set tariff rates for trading partners within weeks. He acknowledged the administration’s limited capacity to negotiate with all countries simultaneously.
“I think we’re going to be very fair. But it’s not possible to meet the number of people that want to see us,” Trump said.
