Howard Lutnick stated that a trade agreement between the US and the EU is likely, but August 1 is a hard deadline for the introduction of new tariffs.

Howard Lutnick, the US Secretary of Commerce, said on Sunday that a trade agreement between the US and the European Union is still possible, but time stops on August 1.

This is the last deadline for everyone, and if there is no agreement, tariffs will be imposed. On CBS's Face the Nation, Howard said he just finished a phone call with European trade negotiators and believes there are still 'many opportunities' to reach an agreement.

"These are the two largest trading partners in the world negotiating with each other. We will come to an agreement. I am confident that we will come to an agreement," he told the host.

The urgency of the situation is due to President Donald Trump's statement on July 12, in which he threatened to impose a 30% tariff on imports from the EU and Mexico starting August 1. This came after several rounds of stalled negotiations with major trading allies. "Nothing prevents countries from negotiating with us after August 1," Howard said, but made it clear that they will still 'pay tariffs starting August 1.'

Trump's hardline position in trade continues.
The White House has taken official steps to notify several trading partners by sending official letters. One of them was sent to European Commission President Ursula von der Leyen confirming the imposition of tariffs. Other letters were sent to Canada, Mexico, Japan, and Brazil, each specifying tariff rates from 20% to 50%. Copper imports were singled out with a special 50% tariff, hitting harder than others.

Howard also stated that small countries such as those in Latin America, the Caribbean, and Africa will start with a 10% base tariff. This proposal aligns with Trump's statement last week that the overall tariff for 'all' countries will likely be 'slightly above 10%.' These small countries have been waiting for confirmation of the rate after Trump announced higher tariffs earlier this month.

But when it comes to larger economies, the situation is different. "Large economies will either open up or pay a fair tariff to America," Howard said, characterizing this approach as non-negotiable unless they come to the negotiating table. While the White House did not clarify whether the EU would receive a reduced rate, the letters sent and published by Trump on Truth Social have already prompted governments to resume last-minute negotiations.

There have also been discussions about renewing the agreement between the US, Mexico, and Canada. While goods currently compliant with the USMCA are exempt from these new tariffs, Howard stated that Trump wants to revisit the deal.

"I think the president is definitely going to review the USMCA," he said. "But that will be in a year." Thus, while Canada and Mexico can avoid tariffs starting August 1—provided they remain under the old agreement.

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