tl;dr
Treasury Secretary Scott Bessent reassured American businesses ahead of President Trump's August 1 tariff deadline, downplaying the impact of potential temporary "snapback tariffs" and emphasizing ongoing negotiations. Despite this, many U.S. companies remain concerned about tariff hikes, which coul...
Treasury Secretary Scott Bessent sought to reassure American businesses ahead of President Donald Trump’s August 1 tariff deadline, downplaying the potential impact of any "snapback tariffs" and suggesting they might be temporary. In an interview, Bessent described the situation as "not the end of the world" if the tariffs are in place for a few days to weeks, provided that countries continue negotiating in good faith.
Despite these reassurances, many U.S. businesses facing possible tariff hikes remain concerned. The looming threat of country-specific tariffs has weighed on import-dependent companies since Trump announced the policy in April. These businesses struggle to adapt to the shifting timelines and expanding tariff lists, which experts warn could lead to higher prices on food and beverages such as liqueurs, spirits, coffee, baked goods, fish, and beer, as companies pass on costs to consumers.
While many American companies have absorbed tariff costs to avoid raising prices, the growing scale of tariffs is making this strategy increasingly difficult. Over 90% of U.S. importers are small businesses, further complicating the economic impact. President Trump indicated he might introduce a sweeping tariff increase of 15% to 20% on products from countries without a trade deal by the August 1 deadline, though some tariffs may jump to levels announced earlier in April before any official authorization.
Top administration officials maintain that the August 1 deadline stands firm, despite ongoing unresolved trade talks and tariff disputes with numerous nations. Meanwhile, the White House and Treasury Department have not immediately commented on Bessent’s statements.