Treasury Secretary Signals Trade Deal Extensions Amid Negotiations

U.S. Treasury Secretary Scott Bessent announced an extension for countries negotiating trade deals in good faith, as the July 8 deadline approaches. Bessent's remarks indicate potential flexibility in the Trump administration's tariff policy. The 'Liberation Day' tariffs had previously caused market instability before Trump's pause announcement.

U.S. Treasury Secretary Scott Bessent indicated on Wednesday the possibility of extending deadlines for countries committed to negotiating trade deals beyond the current July 8 deadline. This extension comes as nations continue to navigate the complexities of global trade agreements under the Trump administration's scrutiny.

Bessent's statements, delivered before the House Ways and Means Committee, highlighted a willingness to extend deadlines for entities negotiating in 'good faith', a term consistently used without clear definition. The potential policy shift aims to maintain momentum in global trade discussions, which include critical discussions with the European Union (EU) and ongoing talks with China on separate terms.

While President Trump has been the key decision-maker on trade and tariff policies, Bessent's increasing influence reflects a moderating approach amid market volatility triggered by initial tariff introductions. The financial market instability underscored the importance of strategic economic diplomacy, with Bessent emerging as a potential stabilizing force within the administration's trade strategy.

(With inputs from agencies.)