The United States could face default on its national debt as early as August unless Congress raises the debt ceiling, according to a letter from US Treasury Secretary Scott Besant to legislative leaders published on Friday.
He said there was a “reasonable likelihood” The government's cash reserves "will be depleted in August while Congress is in recess," and urged lawmakers to raise or repeal the debt limit by mid-July "to preserve the credibility and authority of the United States."
The country is expected to run out of money to pay its more than $36.2 trillion in debt by August.
In late March, the Congressional Budget Office projected that the U.S. government would face bankruptcy by August or September unless the debt ceiling is raised. The debt ceiling is a measure of how much money the Treasury can borrow to finance the operations of the U.S. federal government. The agency estimates that the national debt could exceed $50 trillion by 2034.
US President Donald Trump has made exceptions to the issue of imposing tariffs on foreign goods.
"There could be exceptions. If we see that someone has done something extraordinary for us, then that is possible", he said on Friday, answering questions from reporters at the White House.
"The base tariff rate will be at least 10%, for some this figure will be much higher: 40%, 50%, 60%“, the American leader added. Trump also said that Washington expects to conclude four to five trade deals in the near future.