President Donald Trump plans to reinstate higher tariffs on trading partners that fail to negotiate in "good faith," according to U.S. Treasury Secretary Scott Bessent. Speaking on Sunday, Bessent said nations unwilling to engage seriously in trade talks would receive formal letters reinstating the original tariff rates Trump announced on April 2.
Although Bessent didn’t specify what defines "good faith" negotiations or when the decisions would be finalized, he confirmed that countries not cooperating could see tariff rates jump back to earlier levels. Trump had initially imposed broad tariffs on imports but temporarily reduced them on April 9, lowering most to 10% for 90 days and Chinese imports to 30% to allow time for talks.
Bessent said the administration is currently focused on its top 18 trading partners, and outcomes will depend on their willingness to engage. He noted the U.S. may also implement region-specific tariff rates, such as for Central America or Africa.
The unpredictability of Trump’s tariff policy has disrupted global trade and rattled financial markets. Businesses are struggling to manage supply chains and pricing due to the frequent shifts. Major retailers like Walmart have warned of price hikes in response to higher import costs.
Trump criticized Walmart for planning price increases, stating on social media that the company and China should “eat the tariffs.” However, Bessent later revealed he spoke with Walmart CEO Doug McMillon, who confirmed the company would absorb some of the increased costs.
As Trump pushes to reshape global trade in America’s favor, the administration’s firm stance signals more volatility ahead unless trading partners comply with U.S. demands.