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Trump still intends for reciprocal tariffs to kick in on Apr.2, White House says

"On April 2, each country will receive a number that we believe represents their tariffs," Bessent said. "For some countries, it could be quite low, for some countries, it could be quite high."

U.S. Secretary of the Treasury Scott Bessent speaks to reporters before walking into the White House in Washington, U.S., March 13, 2025. REUTERS/Evelyn Hockstein/File Photo / Reuters

U.S. President Donald Trump still intends for new reciprocal tariff rates to take effect on April 2, the White House said on Mar.18, despite earlier comments from Treasury Secretary Scott Bessent that indicated a possible delay in their activation.

"The intent is to enact tariffs on April 2," the official said when asked to clarify Bessent's comments that countries would get an opportunity to avoid higher tariffs by reducing their own trade barriers.

"Unless the tariff and non-tariff barriers are equalized, or the U.S. has higher tariffs, the tariffs will go into effect," the White House official said.

Bessent told Fox Business Network's "Mornings with Maria" program that Trump on April 2 would give trading partner countries a reciprocal tariff number that reflects their own rates, non-tariff trade barriers, currency practices, and other factors, but could negotiate to avoid a "tariff wall."

"On April 2, each country will receive a number that we believe represents their tariffs," Bessent said. "For some countries, it could be quite low, for some countries, it could be quite high."

"We are going to go to them and say, 'Look, here's where we think the tariff levels are, non-tariff barriers, currency manipulation, unfair funding, labor suppression, and if you will stop this, we will not put up the tariff wall,'" Bessent said of trading partners.

"I'm optimistic that (on) April 2, some of the tariffs may not have to go on because a deal is pre-negotiated, or that once countries receive their reciprocal tariff number, that right after that they will come to us and want to negotiate it down," Bessent said.

Countries that fail to reduce their trade barriers will face steeper tariffs aimed at protecting the U.S. economy, its workers and industries, Bessent added.

His remarks were taken to mean that while the proposed duties would be announced on April 2, their implementation could be delayed to allow time for negotiations. But the White House official said any such deals would need to be negotiated in advance to avoid the new tariffs.

DETAILED WORK

The dueling comments illustrate the developing nature of Trump's new reciprocal tariffs just two weeks out from the April 2 activation deadline.

Details of the plan are still being worked out, one White House official said, with much of the technical work on the expected tariffs being led by the U.S. Trade Representative’s office, headed by Jamieson Greer, and his staff of some 200 people at USTR.

Vice President JD Vance has also played a more active role in the discussions in recent weeks, the official said.

A spokesperson for USTR did not immediately respond to a request for comment on the reciprocal tariff plan.

Greer and his staff have been wrestling with how to design the reciprocal tariffs given each of the 186 members of the World Customs Organization have different duty rates, sources familiar with the process said.

Calculating the tariff rates is complicated by Trump's vow to reflect the impact of non-tariff barriers, including taxes and other measures that U.S. officials argue give other countries’ firms an unfair advantage.

At the Commerce and Treasury departments, political appointees have also run into hiring delays linked to vetting, which has created some negotiating bottlenecks, the same sources familiar with the process said.

Financial markets have become increasingly nervous about the impact of Trump's tariffs and retaliation from trading partners will have on inflation and economic growth. U.S. stocks fell on Mar.18 ahead of the Federal Reserve's rate decision on Mar.19.

TRIGGERING TALKS

The Trump administration expects the tariff announcements to trigger offers by affected countries to reduce their own tariffs or non-tariff measures, the official said, noting that India, for one, was already trying to get ahead of the U.S. moves.

After Indian Prime Minister Narendra Modi and Trump met last month, the two nations agreed to resolve tariff rows and work on the first segment of a deal by the fall of 2025, aiming to reach two-way trade of $500 billion by 2030.

Trump often singles out India as the country with the highest average tariff rates, among top trading partners, while European Union countries are criticized for their high 10 percent car tariff rate, which is four times the 2.5 percent U.S. passenger car rate, but less than the 25 percent U.S. tariff on pickup trucks.

Bessent said that the Trump administration is particularly focused on the 15 percent of countries that have the highest tariffs and large trading volumes with the U.S., which he referred to as the "Dirty 15."

These countries also often have regulations governing domestic content or food safety that conspire to keep U.S. products out of their markets, he said.

British business and trade minister Jonathan Reynolds came to Washington this week to meet in person with Lutnick and Greer, with both sides talking up the prospects of a bilateral trade deal focused on technology.

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