US Commerce Secretary Howard Lutnick on Sunday reaffirmed that the Trump administration’s August 1 deadline for imposing new tariffs on key trading partners, including the European Union, is non-negotiable, warning that customs officials will begin collecting duties from that date.
“So no extensions, no more grace periods. August 1, the tariffs are set. They’ll go into place. Customs will start collecting the money, and off we go,” Lutnick told Fox News on Sunday, signaling the administration’s firm stance on the trade front.
Pressure on EU to strike a deal
The European Union is under increasing pressure to offer significant market access to US exports in order to avoid the planned 30% tariffs. While negotiations are ongoing, Lutnick emphasised that the decision to ease the tariffs ultimately rests with President Donald Trump.
“The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30% tariffs that he set,” Lutnick said. He noted that the EU appeared eager to reach a compromise, but any final outcome depends on the scale of concessions made to boost US business access.
Lutnick said there is a “50-50 chance” that a deal with Brussels can be reached before the deadline. The administration has repeatedly called for the EU to lower trade barriers and open its markets to US agricultural and industrial goods.
Lutnick added, “You know they’re hoping they make a deal, and it’s up to President Trump, who’s the leader of this negotiating table. We set the table.”
Five countries — Britain, Vietnam, Indonesia, the Philippines, and Japan — have reached agreements with the Trump administration ahead of the upcoming Friday deadline, as the US moves to reshape the global free trade framework by imposing tariffs on nations it accuses of unfair trade practices.
While the tariffs agreed upon by these countries are generally higher than the 10 percent base rate the US has applied to most nations since April, they remain significantly lower than the steep rates the Trump administration had threatened if no deals were secured.
With just days remaining before the deadline, global markets are watching closely for any developments, as the imposition of steep tariffs could reignite trade tensions and disrupt transatlantic commerce.
