US Trade Secretary Bessent Talks Tough:Bessent lays down the law on global trade, warning the EU, Japan, and Vietnam to finalize deals before the July 9 deadline—or face steep tariffs. In a wide-ranging interview, he details tariff strategies, the Vietnam deal, UK’s early win, and how upcoming tax reforms could trigger a surge in U.S. jobs and investment.
US Trade Secretary Bessent Talks Tough: 20% Tariffs, No Extensions, and a Big Bet on US Jobs Boom
With global trade negotiations heating up and the July 9 deadline fast approaching, U.S. Trade Secretary Bessent provided key insights into the Trump administration’s trade strategy. He discussed deal timelines, tariff implications, and the expected economic impact of upcoming policy shifts in a detailed interview watched across the world.
According to Bessent, many countries are waiting until the last minute to close trade deals, hoping to secure better terms. However, he warned that delaying may have serious consequences. If no agreements are reached, the tariff rate could revert to the much higher “Liberation Day” levels set on April 2. He emphasized that these nations should not assume automatic extensions, stating that only President Trump will decide whether countries are negotiating in good faith.
Asked about the EU, Bessent said he met with his EU trade counterpart earlier in the day. Ambassador Jameson Greer, who is leading the U.S. negotiating team, will continue working through the weekend to finalize discussions. While the EU Commission President Ursula von der Leyen tweeted that the bloc is ready for a deal, Bessent refrained from confirming its finalization, saying only that “we’ll see what we can do.”
In contrast, the situation with Japan appears more complex. Bessent noted that Japan is facing domestic political constraints due to an upper house election scheduled for July 20. This election pressure has reportedly made it more difficult for Japanese officials to commit to a deal by the July 9 deadline.
Bessent also spoke about the UK’s successful trade negotiation. He praised the UK for approaching early, negotiating respectfully, and securing a 10% tariff deal. He added that the UK “came to the front of the line” and achieved strong terms for its people, partly due to their early and collaborative approach. When asked if other deals like those with the EU or Japan could fall somewhere between the UK’s 10% and Vietnam’s 20% tariffs, he declined to comment, joking that he wouldn’t reveal such details “on intergalactic television.”
The Vietnam deal, according to Bessent, has been “finalized in principle.” He clarified that the 20% tariff on Vietnamese imports is not cumulative—it replaces the current 10% rate. The move is largely in response to transshipment concerns, where Chinese products are routed through Vietnam to bypass U.S. tariffs. Bessent stated that a significant portion of trade from Vietnam falls under this category.
Concerns have been raised by U.S. businesses, particularly retailers and the Footwear Association, many of whom relocated manufacturing to Vietnam after the first Trump administration’s trade actions on China. Bessent responded by arguing that businesses have already adapted to a 10% tariff, and an additional 10% is unlikely to cause major disruption. He dismissed inflation fears, saying that tariffs are not inherently inflationary. At most, he expects a one-time price adjustment, not broad-based economic inflation.
Asked whether the burden of higher tariffs would fall on U.S. companies and reduce their profit margins, Bessent countered by pointing out that Vietnamese producers might absorb some of the impact to maintain market share. He suggested that companies are renegotiating prices with their suppliers and emphasized that many apparel firms saw unusually high profit margins during the COVID-19 pandemic, giving them room to adjust without passing on costs to consumers.
In addition to trade issues, Bessent discussed the latest U.S. jobs report. The unemployment rate fell to 4.1%, a surprising result considering restrictive Federal Reserve policy and ongoing tariff enforcement. Bessent noted that many of the new jobs came from state and local government hiring, which can be seasonal and often skew monthly reports. He advised caution in interpreting single-month data, but stated that the overall employment trend is positive.
Looking ahead, Bessent predicted a sharp acceleration in economic activity once President Trump signs the administration’s new tax bill. He believes that the bill’s provision for 100% expensing on equipment and factories will lead to a surge in capital expenditures. He said that uncertainty over the tax framework had been holding companies back, but now CEOs are ready to invest, particularly in construction and manufacturing.
He expects this capital investment boom to begin before Labor Day, starting with construction jobs and spreading to other sectors. Bessent expressed confidence that this new wave of private sector investment would significantly strengthen the U.S. labor market and overall economy.
Bessent closed the interview with a strong statement of alignment with the president’s vision, reiterating that all major decisions, including extensions and tariff enforcement, will ultimately be made by President Trump.
Disclaimer:
This article is based on statements made by U.S. Trade Secretary Bessent during a media interview. Information reflects the status of ongoing trade talks and economic policy as of early July 2025 and may be subject to change.