(Reuters) -U.S. Treasury Secretary Scott Bessent on Wednesday said the Trump administration is prepared to “roll the date forward” with trading partners negotiating in good faith if the deadline marking the end of the 90-day pause on President Donald Trump’s reciprocal tariffs is reached with no deal.
“It is highly likely that those countries – or trading blocs as is the case with the EU – who are negotiating in good faith, we will roll the date forward to continue the good-faith negotiations,” Bessent told the House Ways and Means Committee. “If someone is not negotiating, then we will not.”
Bessent’s remarks, in response to a question from a Democratic lawmaker, marked the first time a Trump administration official has indicated some flexibility around the expiration date for the pause. That date – July 8 – is now just four weeks away, and so far the White House has struck only one preliminary deal with a major foreign trading partner affected by the pause, Britain.
A deal struck on Tuesday in London with China to de-escalate that bilateral trade war is proceeding on a separate track and timeline.
The White House did not immediately respond to a question about whether Trump shared Bessent’s view.
Trump announced the pause on April 9, a week after unveiling “Liberation Day” tariffs against nearly all U.S. trading partners that proved to be so unexpectedly large and sweeping that it sent global financial markets into near panic.
The S&P 500 Index plunged more than 12% in four days for its heftiest run of losses since the onset of the COVID-19 pandemic in early 2020. Investors were so rattled they bailed out of safe-haven U.S. Treasury securities, sending bond yields rocketing higher. The dollar sank.
Markets started their recovery on April 9 when Trump unexpectedly announced the pause. A further leg up in the recovery followed in early May when the Trump team reached a preliminary deal to dial back the triple-digit tariff rates it had imposed on goods from China. The events have given rise to what some on Wall Street have parodied as the “TACO” trade – an acronym for Trump Always Chickens Out.
“The only time the market has reacted positively is when the administration is in retreat from key policy areas,” Democratic Representative Don Beyer of Virginia told Bessent before pressing him on what should be expected at the end of the next deadline next month.
“As I have said repeatedly there are 18 important trading partners. We are working toward deals with those,” Bessent said before going on to signal a willingness to offer extensions to those negotiating in good faith.
(Reporting By Dan Burns; Editing by Chris Reese and Daniel Wallis)
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