OAN Staff Blake Wolf
12:26 PM – Sunday, May 18, 2025
U.S. Treasury Secretary Scott Bessent warned other nations that the United States could reintroduce reciprocal tariff levels if foreign countries fail to negotiate in “good faith.”
“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 stated on Sunday. “This means if they’re not negotiating in good faith, they are going to get a letter saying, here is the rate. So, I would expect that everyone would come and negotiate in good faith.”
Bessent’s comment was in reference to the tariffs the Trump administration announced on April 2nd, which detailed reciprocal tariffs the United States placed on foreign nations.
President Donald Trump issued a 90 day pause on most of the tariffs shortly thereafter.
“I can tell you that, with a few exceptions, the countries are coming with very good proposals for us,” Bessent continued. “They want to lower their tariffs; they want to lower their non-tariff barriers.”
Without providing any details, Bessent explained that the Trump administration is keying in on “18 important trading relationships.”
Throughout the Sunday interview on CNN, Bessent fielded concerns regarding the uncertainty of the market caused by President Trump’s tariffs, to which he responded, explaining that the uncertainty is utilized as a negotiating tactic.
“If we were to give too much certainty to the other countries, then they would play us in the negotiations. I am confident that at the end of these negotiations, both the retailers, the American people and the American workers will be better off,” Bessent added.
Bessent also spoke about trade with China, explaining that the Trump administration aims to “continue trading with China, especially in non-strategic goods, and at lower tariff levels,” while also focusing on decreasing reliance on China for “critical industries.”
“During COVID, we realized that we had some very strategic shortfalls whether it was medicines, semiconductors, steel – the other products,” he stated. “The medium-term goal is to bring back these strategic industries as quickly as possible.”
Additionally, Bessent also revealed that he spoke with Walmart CEO Doug McMillon on Saturday, after President Trump issued a statement pushing the company to “EAT THE TARIFFS” rather than pass on the cost to consumers.
Trump’s comment was seemingly in response to McMillon indicating that Walmart will increase their prices due to the tariffs while speaking with investors, although noting that the company will “do our best” to keep prices low.
“Even at the reduced levels, the higher tariffs will result in higher prices,” McMillon added.
“Understand, that came from an earnings call,” Bessent stated regarding McMillon’s comment. “On an earnings call – because of SEC requirements – they have to give the most draconian case.”
“Walmart will be absorbing some of the tariffs. Some may get passed on to consumers,” Bessent added.
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