Trump Threatens Higher Tariffs on Trade Partners Not Negotiating in Good Faith

U.S. President Donald Trump is preparing to increase tariffs on key trade partners that fail to negotiate in good faith, signalling a tougher stance on international trade in 2025. The announcement, confirmed by Treasury Secretary Scott Bessent, marks a significant escalation in U.S. trade policy.

U.S. Trade Tariffs to Rise for Countries Failing to Cooperate

During televised interviews over the weekend, Secretary Bessent indicated that countries not engaging sincerely in trade talks could face higher U.S. import tariffs. However, he stopped short of specifying what constitutes “good faith” or when these new tariff rates would take effect.

This move follows Trump’s announcement on 2 April, where he outlined a new tariff strategy aimed at protecting American economic interests. The White House has since introduced a 90-day grace period to allow for the negotiation of multiple bilateral trade agreements.

Partial Tariff Pause and China Agreement Calms Markets

The U.S. recently struck a deal with China to temporarily reduce and suspend certain tariffs, helping to ease concerns of a full-scale U.S.-China trade war. Financial markets reacted positively, with major stock indices posting weekly gains.

Despite this pause, a universal 10% tariff on imported goods remains in effect, along with specific duties on steel, aluminium, and automotive parts. Experts note that the current U.S. tariff rate is now at its highest level since the 1930s.

Over 150 Countries Interested in U.S. Trade Deals

Speaking during a Middle East visit, Trump claimed that more than 150 countries are seeking trade deals with the United States. However, he acknowledged that not all negotiations can proceed immediately due to limited capacity.

Bessent confirmed that countries not demonstrating cooperation will receive formal letters from both the Treasury Department and the Commerce Secretary, Howard Lutnick. These letters will outline new tariff rates for doing business with the U.S. and are expected to be sent within two to three weeks. No specific countries have been named.

Focus on Top 18 Trade Relationships

Appearing on NBC’s Meet the Press, Bessent stated that the Trump administration is prioritising the U.S.'s top 18 trade partners. He emphasised that the pace of each trade deal will depend on whether these nations are engaging in transparent, fair trade negotiations.

“They will receive a letter with the new tariff rate,” Bessent said. “We expect that this will incentivise all parties to negotiate in good faith.”

(Sources: investing.com, reuters.com, ChatGPT)