Completing tariff deals with major countries may take longer than the 90-day pause the Trump administration instituted last week.
“Let’s set aside China. There are 15 large trading partners. We set aside China. There are 14, and we’re in rapid motion and setting up a process for the 14 largest trading partners, most of whom have very large deficits. So, in 90 days, are we going to have a complete doc, a formal legal document done and dusted? Not likely,” US Treasury Secretary Scott Bessent told Yahoo Finance Tuesday in an exclusive interview.
“But I think if we follow the process, we could have substantial clarity on those 14 away from China in terms of agreements in principle. And then once we reach a level that we’ve agreed on and they’ve agreed to lower their tariffs, lower their non tariff barriers, currency manipulation, and subsidies of industry and labor, then I think we can move forward,” he continued.
On April 9, the Trump administration announced a 90-day pause on all reciprocal tariffs, except China. Tariffs on one of the US’s most important trading partners now stand at 145% — a 125% reciprocal tariff and the 20% Trump previously levied.
A 10% across-the-board duty is still being applied to all other imports.
The administration further refined its tariff plans on April 11.
The White House issued a rule that spared smartphones, computers, semiconductors, and other electronics from reciprocal tariffs — especially the harsher tariffs on Chinese goods. US Customs and Border Protection said the goods would be excluded from Trump’s 10% global tariff and the 125% reciprocal Chinese tariffs.
Read more: The latest news and updates on Trump’s tariffs
Trump quickly downplayed that he was reversing course on tariffs, noting Chinese electronics will still get hit.
“There was no Tariff ‘exception,'” Trump said in a social media post on Sunday. “These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.'”
Bessent suggested a deal with China hasn’t yet taken form, but tariffs above 145% may not be in the cards.
“I think no one thinks that these are sustainable over the long run. But with President Trump, I’m not going to give away his negotiating strategy,” Bessent said.
Listen: Inside the budding bond market crisis
The trade war is injecting considerable volatility into global stock and bond markets. Stocks of companies reliant on China for manufacturing, such as Apple (AAPL), have been hammered. Gold has touched a record high, and the 10-year yield has risen to about 4.5% as investors voice a lack of confidence in US policies.
