Lutnick Claims U.S.-EU Trade Deal Is Coming

Commerce Secretary Howard Lutnick, during a Sunday interview, expressed his confidence in the United States’ ability to secure a trade deal with the European Union, despite a looming Aug. 1st deadline for the imposition of tariffs.

Lutnick’s conversation with European trade negotiators left him optimistic, noting there was ‘plenty of room’ for an agreement. He stated, ‘These are the two biggest trading partners in the world, talking to each other. We’ll get a deal done. I am confident we’ll get a deal done.’

U.S. President Donald Trump, on July 12, threatened to impose a 30% tariff on imports from Mexico and the European Union starting on Aug. 1, following weeks of unsuccessful negotiations with the major U.S. trading partners to reach a comprehensive trade deal.

Lutnick has made clear that Aug. 1 stands as a firm deadline. ‘Nothing stops countries from talking to us after Aug. 1, but they’re going to start paying the tariffs on Aug. 1,’ he emphasized.

Trump has announced these tariffs through a letter addressed to European Commission President Ursula von der Leyen and other trading partners, which include Mexico, Canada, Japan, and Brazil. The proposed blanket tariff rates range from 20% to 50%, as well as a 50% tariff on copper.

Lutnick also anticipates Trump to revisit the United States-Mexico-Canada Agreement, formed during Trump’s initial term in office from 2017 to 2021. Unless there are significant amendments, goods from Mexico and Canada complying with the agreement will be exempt from these tariffs.

The completion of this trade deal could have far-reaching effects on the U.S. economy and its relationships with its major trading partners.