U.S. Treasury Secretary Signals Flexibility in Tariff Negotiations

U.S. Treasury Secretary Scott Bessent announced on Wednesday a potential extension for the negotiation period of President Donald Trump's reciprocal tariffs, provided trading partners engage in negotiations sincerely. The impending deadline has created a sense of urgency among affected nations seeking resolutions.

Bessent's statement, shared during the House Ways and Means Committee session, marks the first indication of flexibility from the Trump administration on this issue. The existing deadline, set for July 8, looms just weeks away with only a preliminary deal struck with Britain, while talks with China continue separately.

The government's April tariff pause led to a significant market recovery following a sharp decline. Wall Street has parodied this trend, dubbing it the 'TACO' trade, suggesting that markets rally when the administration steps back from firm policy stances. As the deadline approaches, Bessent hinted at possible extensions for ongoing good-faith negotiations.

(With inputs from agencies.)