Scott Bessent Signals Willingness To Extend Tariff Pause For 'Good Faith' Negotiations, Trump Thinks Not A 'Necessity'

Treasury Secretary Scott Bessent has suggested that the Trump administration may consider extending the current 90-day tariff pause beyond July 9 for the U.S.’s top trading partners. This extension, however, is contingent on the partners’ “good faith” in ongoing trade negotiations.

What Happened: Bessent announced this possibility during a hearing before the House Ways and Means Committee in Washington. He mentioned that the U.S. is “working toward deals” with its 18 “important trading partners.”

Bessent further stated that the U.S. is likely to “roll the date forward to continue good faith negotiations” with sincere negotiating partners like the European Union. However, he clarified that this extension would not be granted if a partner is not negotiating in good faith, as reported by CNBC.

Meanwhile, President Donald Trump indicated to reporters ahead of a performance at the Kennedy Center that he was open to extending the July 8 deadline for finalizing trade talks before increased U.S. tariffs are implemented, reported Reuters.

He noted that negotiations were underway with approximately 15 countries, including South Korea, Japan, and the European Union. However, he feels that the extension may not be a “necessity.”  “We’re rocking in terms of deals,” he said.

Trump said that eventually the U.S. will issue final trade offers to other countries, telling them to either accept or reject the terms, though it’s not ready to do so yet.

SEE ALSO: Elizabeth Warren Says Millions Face ‘Financial Scarlet Letter’ As Trump Restarts Student-Loan Collections: ‘…Can Cost Someone A Job Opportunity’

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Why It Matters: On Wednesday, President Trump announced the ‘deal’ with China, which awaits final approval from President Xi Jinping. The framework of the deal includes supply of rare earths from China, while the U.S. would have to allow Chinese students in American colleges and universities.

The Trump administration’s approach to trade negotiations has been a point of significant interest in recent months. In May, Trump announced that the U.S. would independently set new tariff rates on several trading partners, bypassing the need for individual agreements. This move was seen as a significant shift in U.S. trade policy and has since been followed by ongoing negotiations with various countries.

These recent statements from Bessent and Trump suggest a willingness to consider a more flexible approach to the current tariff pause, potentially signaling a shift in the administration’s trade strategy.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.