Treasury Secretary Scott Bessent made it clear Sunday: if countries don’t strike fair trade deals by August 1, the U.S. will restore the original Trump tariff levels from April 2.
“What’s great about having President Trump on our side is he’s created maximum leverage,” Bessent told Fox News Sunday host Shannon Bream.
Bessent explained that as the July 9 grace period for trade negotiations ends, countries now face a binary choice: cut a deal, or face the full weight of the Trump tariff structure, including:
“By telling our trading partners that they could boomerang back to the April 2nd date, I think it’s really going to move things along,” Bessent said.
Several agreements are reportedly in the “home stretch”, and Trump’s take-it-or-leave-it letters have already been sent to 12 nations, warning them of the looming tariff snapback.
Powell on the Chopping Block?
The interview also comes amid rising speculation that Bessent is being eyed to replace Fed Chair Jerome Powell, who has increasingly drawn Trump’s ire over misleading testimony and questionable policy decisions.
Last week, Trump appeared to call for Powell to resign, following revelations that the head of the FHFA accused him of giving “deceptive” testimony to Congress.
Bream asked Bessent if Trump’s public pressure on Powell was effective.
Bessent: Trump Plays Like Bobby Knight — And Wins
“I’m a basketball fan. And in basketball there are two schools of working the refs,” Bessent responded.
“There’s the Bobby Knight school and the Dean Smith school. Obviously, President Trump is more in the Bobby Knight school. And I’ll tell you — Bobby Knight won three national championships. Dean Smith only won two.”
Translation: Trump’s aggressive style gets results — and Powell better take notice.
Will Bessent Be the Next Fed Chair?
Pressed again about the rumors he’ll replace Powell, Bessent demurred — but didn’t deny the possibility.
“I think I have the best job in Washington,” he told Maria Bartiromo last week.
“But I will go where the president thinks that I am best suited.”
Insiders note that Bessent has Trump’s full confidence, and his handling of the tariff negotiations and Treasury reform has earned him strong praise within the administration.
