Bessent says 15% global tariffs to be imposed this week, US to support Gulf oil trade
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The news: US Treasury Secretary Scott Bessent said that President Donald Trump’s plan to hike a 10% universal tariff to 15% is likely to be imposed this week.
The context: “That’s likely sometime this week,” Bessent said during a CNBC interview on Wednesday, in response to a question about when the increase would be implemented.
Trump announced the tariff increase last month after the US Supreme Court ruled that the majority of the President’s tariffs were illegal.
“It’s my strong belief that the tariff rates will be back to their old rate within five months…They are very slow moving, but they are more robust,” he Bessent added with regard to the so-called sections 301 and 232 tariffs that are planned to replace the invalidated IEEPA duties.
Bessent also discussed risk to the oil market due to the US and Israeli war against Iran which has rocket oil prices since it began five days ago.
“I would encourage everyone to look through the noise and see where we are going on the other side of this in terms of the crude markets — the crude markets are very well supplied,” Bessent said. “There are hundreds of millions of barrels on the water away from the Gulf. But more importantly, we have a series of announcements that we’re going to be making.”
Bessent said that in addition to the announcements made by Trump on Tuesday, saying that he had ordered federal backing for shipping insurance and that the US military would escort oil tankers through the crucial Strait of Hormuz waterway, there is a “series of announcements” that the administration will be making.
The numbers: The comments from the Treasury Secretary saw US crude oil prices fall or 1.1%, to USD73.74 ($104.57) per barrel by 8:18am ET Wednesday (12:18am AEDT Thursday), while global benchmark Brent was down USD 57 cents, or 0.7%, to USD80.83. The move marks the first time oil prices have dipped since the US and Israel launched strikes against Iran on Saturday AEDT.
