Bessent: Longer suspension of higher tariffs, including for the EU, very likely

“We have 18 important trading partners. We are working on agreements on that, and it is very likely that for those countries — or trading blocs, like the EU — that are negotiating in good faith, we will move the date forward to continue negotiating in good faith,” Bessent told the House Budget Committee. He threatened that for those countries that are not negotiating in good faith, tariffs would revert to those announced on Liberation Day. For the EU, the tariff is 20 percent, up from 10 percent now.

Donald Trump's executive order suspending higher tariffs - which Trump called "reciprocal tariffs" - expires on July 9. Despite promising "90 deals in 90 days", the US has not yet finalized any agreement beyond establishing the general framework for a deal with the UK.

Trump also threatened to impose 50 percent tariffs on the EU earlier, but withdrew from it at the request of European Commission President Ursula von der Leyen. He said then that the EU had until July 9 to conclude an agreement, but Bessent's words indicate that this deadline will be extended.

During the hearing, Bessent also declined to provide a specific “X date,” the day when the U.S. debt would reach the legal debt limit of $36 trillion. Instead, he said it would happen in “mid- to late summer.” Congress must vote to raise the limit by then to avoid a formal bankruptcy. Bessent, however, said he would not allow that to happen.

During one of the exchanges with Democratic congressmen, the minister also addressed reports that he had a fight with Elon Musk. Bessent asked congressman Jimmy Gomez, who was questioning him, whether he believed what the right-wing website Breitbart, which had first reported it, wrote. But then he said that South Carolina, where the minister is from, always prevails over South Africa, where Musk is from.