0
U.S. President Donald Trump holds up a tariff chart during a press conference at the White House Rose Garden on April 2, announcing reciprocal tariff rates on major trade partners. / Source: AP-Yonhap News

The United States has hinted that it will impose a 25% reciprocal tariff on South Korean imports unless the two countries reach a trade agreement by July 8, according to statements made by U.S. Treasury Secretary Scott Besant.

Speaking with CNBC on July 3, Besant warned that if negotiations with trade partners fail to conclude by the deadline, the U.S. will revert to the tariff rates announced by President Donald Trump on April 2. “They should be cautious,” Besant said, “because the reciprocal tariff rates could return to the levels set on April 2.”

He also noted that President Trump will ultimately determine whether each country is negotiating with the U.S. in good faith.

In a separate interview with Bloomberg TV, Besant said the administration hopes to announce trade deals with several countries before the grace period ends. He added that around 100 countries are expected to face the minimum reciprocal tariff of 10%.

Taken together, Besant’s remarks suggest the U.S. will apply a 10% baseline tariff to roughly half of its 200 trading partners, while the 57 entities named in Trump’s April 2 announcement—including 56 countries or regions and the European Union—will face higher rates unless separate agreements are reached. South Korea is one of those 57, and without a deal, it is expected to be hit with a 25% tariff.

Asked whether the U.S. might extend the July 8 deadline, Besant replied, “We’re not going to publicly tell them we’ll give them more time when they should be crossing the finish line.”