Trump Administration Pauses Tariffs, Warns of Return to "Reciprocal" Level

Treasury Secretary Scott Bessent announced Sunday that tariff rates could return to "reciprocal" levels if trade deals aren't reached during the administration's 90-day pause. "President Trump has put them on notice that if you do not negotiate in good faith, you will ratchet back up to your April 2 level," Bessent told CNN.

While Bessent mentioned 18 key trading partners as priorities, he did not specify when tariffs might return to reciprocal levels. He also downplayed Moody's recent downgrade of US government debt.

Addressing inflation concerns, Bessent characterized Walmart's price hike warning as a "worst case scenario" after speaking with CEO Doug McMillon. This followed President Trump's Saturday message to Walmart to "eat the tariffs" rather than raise consumer prices, pointing to the retailer's significant profits last year.

On Thursday, Walmart had warned that tariff-related costs could lead to higher prices and joined other companies in withholding second-quarter profit guidance due to trade disruptions.

Following his Middle East trip, Trump renewed criticism of Federal Reserve Chairman Jerome Powell, urging interest rate cuts "sooner, rather than later" and describing Powell as "legendary for being Too Late."

President Trump stated Friday that his administration will set tariff rates for trading partners within weeks, noting limited capacity to negotiate with all countries simultaneously.