Bessent Predicts Tariff Pause Extension Is ‘Highly Likely’ – Here’s Why It Matters
Markets brace as tariff truce looks set to stretch longer—because when has kicking the can down the road ever failed?
The Looming Pause
Trade tensions take a backseat as Bessent signals regulators are leaning toward extending the tariff ceasefire. No hard numbers yet, but the writing’s on the wall: nobody wants to rock the boat in a shaky macro climate.
Why Traders Should Care
Another delay means more breathing room for supply chains—and more time for CFOs to pretend they’ve got a hedging strategy. Meanwhile, crypto markets barely blink; decentralized finance never needed tariffs anyway.
The Bottom Line
Classic regulatory theater. Buy the rumor, sell the news—unless you’re holding bags of import-dependent stocks. Then maybe pray harder.
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However, countries negotiating in good faith with the U.S. could receive a tariff pause extension past July 9, said Treasury Secretary Scott Bessent on Wednesday.
“There are 18 important trading partners — we are working toward deals on those — and it is highly likely that those countries that are… negotiating in good faith, we will roll the date forward,” said Bessent in a House Ways and Means Committee hearing.
Reciprocal Tariff Pause Likely to be Extended Further
Bessent didn’t specify what qualifies as good faith nor the length of the extension that countries could receive.
Earlier today, Trump said that the relationship between the U.S. and China is “EXCELLENT” after the countries agreed to a framework trade deal, which is still pending approval from Trump and Chinese President Xi Jinping.
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