Commerce Secretary Howard Lutnick revealed that the April 2 “Liberation Day” tariffs, which have been paused until July 9, won’t go into effect until early August.
Lutnick, appearing alongside President Donald Trump on Sunday in New Jersey, told reporters that if countries fail to reach a trade deal with the United States, they would face the increased levies on Aug. 1, nearly a month after the pause expires on Wednesday.
“The tariffs go into effect Aug. 1. But the president is setting the rates and the deals right now,” Lutnick explained.
Shortly before Trump’s commerce secretary clarified the tariff plan, the president projected confidence that “most” countries will be “done” by July 9 anyway, either through a trade deal or a letter outlining the increased rates in the event a deal is unachievable.
That assessment follows similar optimism from Treasury Secretary Scott Bessent, who said earlier on Sunday that the Trump administration is “close to several deals.”
“As always, there’s a lot of foot-dragging on the other side,” Bessent said. “I would expect to see several big announcements over the next couple of days.”
TARIFF RATES TO RETURN TO APRIL LEVELS IF AUGUST TRADE DEAL DEADLINE UNMET, BESSENT SAYS
Bessent also insisted that the month-long period between when the tariff rates are outlined to countries and when they actually take effect is not a new deadline from the administration to reach more trade deals.
“It’s not a new deadline. We are saying, ‘This is when it’s happening. If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice,’” he said.
