President Donald Trump on Monday unveiled a sweeping new wave of tariffs targeting multiple countries, warning that any nation failing to strike a trade deal with the U.S. by August 1 will face sharply higher rates previously announced in April.
The announcement marks an aggressive escalation in Trump’s “America First” trade agenda, as the administration moves to pressure foreign governments to negotiate on terms more favorable to the U.S.
Peter Navarro, Trump’s senior counselor for trade and manufacturing, defended the policy shift in an interview with Scripps News.
“What we’re seeing — and what I think the American people find eye-opening — is that these countries we run large trade deficits with have grown comfortable taking advantage of us,” Navarro said. “So the president’s message is simple: If you want access to the U.S. market, you’re going to pay a fair price for it.”
Tariffs Already Generating Revenue, Navarro Says
Navarro claimed that the tariffs are already proving beneficial to the American economy.
“We’re collecting billions in tariff revenue, which is being used to fund things like tax relief for American families,” he said. “This is only the beginning. As new deals take shape, the benefits will keep flowing.”
Tensions with the Fed Over Rates
Navarro also criticized the Federal Reserve for maintaining what he called artificially high interest rates, blaming the policy for holding back economic growth.
“The Fed funds rate is probably about 50 basis points too high right now,” he said. “That may not sound like much, but it translates to a quarter to a half percentage point of lost GDP growth. That’s the difference between creating or not creating roughly 750,000 jobs.”
He warned that elevated interest rates also make it more expensive to service the national debt — much of which is financed through short-term borrowing.
“That’s billions in unnecessary interest payments that could have been avoided,” Navarro added.
Economic Stakes Ahead of Deadline
With the clock now ticking toward the August 1 deadline, Trump’s administration is betting that countries will blink first — renegotiating trade agreements to avoid costly tariffs.
Critics, including Federal Reserve Chair Jerome Powell, have suggested that the uncertainty created by tariffs is dampening investment and slowing growth. But Trump’s advisers remain confident that the strategy will ultimately pay off.
For now, the president’s message is clear: make a deal by August 1 — or pay up.
