The United States has already collected $100 billion in tariffs this year, and the figure could triple to $300 billion by December, US treasury secretary Scott Bessent said on Tuesday during a Cabinet meeting chaired by President Donald Trump.
Trump, nodding in agreement, reiterated the administration’s firm stance, declaring that the real flow of tariff revenue would begin in earnest from August 1. “Money from tariffs to start coming in August 1,” Trump said. “Everyone has to pay, if they want to deal in the US,” he added.
He also acknowledged the country’s existing trade imbalances.
“We have trade deficit with a lot of countries,” ET quoted Trump.
His comments came just an hour after announcing that no further extensions would be granted for the “Liberation Day” tariffs, which had initially been suspended in April, giving a 90-day halt, till July 9.
“As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025.There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 — No extensions will be granted,” Trump wrote on Truth Social.
From not 100% firm to NO extensionsTrump had previously hinted at some room for negotiations. Speaking at a dinner with Israeli PM Benjamin Netanyahu last week, he said, “I would say firm, but not 100 percent firm,” when asked whether the August 1 deadline was final. “I would say final, but if they call with a different offer, and I like it, then we'll do it.”
However, by Tuesday, the tone had shifted. Trump confirmed that letters had gone out to over a dozen nations, warning that suspended tariffs would return at even higher rates.
The new letters imposed 25% duties on Japan and South Korea, with up to 40% on other countries. Indonesia was told to expect 32% tariffs, Bangladesh 35%, and Thailand 36%. Several African and Southeast Asian nations also received notices, though countries like Laos and Cambodia saw lower-than-expected rates.
Trump defended the tough measures, calling current trading arrangements “unfortunately, far from Reciprocal.” He warned that any countermeasures would lead to “further escalation.”
The tariff push comes amid mounting pressure on Trump to deliver on his “90 deals in 90 days” pledge. So far, only two firm agreements, with Britain and Vietnam, have been confirmed, along with a limited easing of tariffs with China.
He also threatened an additional 10% tariff on countries aligning with the Brics bloc, accusing them of pursuing “Anti-American policies” after the group criticised US protectionism at its 2025 summit.
Diplomatic efforts appear to be ongoing, with the European Commission confirming that EU chief Ursula von der Leyen had a “good exchange” with Trump during a phone call on Sunday, indicating that behind-the-scenes talks may still be in motion despite the president’s tough public stance.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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