Scott Bessent, U.S. Treasury Secretary, has expressed concerns about potential tariff hikes if trade negotiations continue to stall. This could significantly impact trade flows and market volatility.
Warning of Potential Tariff Hikes
Scott Bessent has warned international partners about potential tariff hikes amidst stalled trade negotiations. According to Bessent, a lack of progress could lead to increased tariffs, negatively affecting international trade.
Prospects of Increasing Tariffs to 50%
Scott Bessent emphasized that tariffs could be reinstated at levels as high as 50% if extended negotiations continue. Currently, tariffs stand at 10%, but Bessent noted that if conditions do not change, they may revert to levels announced on April 2, between 11% and 50%. "Many countries could receive notices of sharply higher tariffs without successful negotiations with Washington," he stated.
Market Impact: Equities and Digital Assets at Risk
Market analysts express concern over potential volatility that could affect both stock markets and digital assets. Historical data show that similar threats in the past led to negative reactions from markets, highlighting the importance of closely monitoring trade negotiations and the potential for further disputes.
In light of Scott Bessent's warnings about potential tariff hikes, markets may face increased volatility. Thus, paying attention to trade negotiations becomes critically important for understanding future market movements.
