Catenaa, Monday, July 21, 2025 –U.S. Commerce Secretary Howard Lutnick said Sunday he remains confident that Washington and Brussels can reach a trade agreement before August 1, the day President Donald Trump’s sweeping tariffs on the European Union are set to take effect.
Lutnick told CBS’ “Face the Nation” he had just spoken with EU negotiators and believes “plenty of room” remains for consensus. The tariffs, announced by President Trump on July 12, would impose a 30% levy on EU and Mexican imports unless a new pact is sealed by the deadline.
“These are the two biggest trading partners in the world, talking to each other. We’ll get a deal done,” Lutnick said. He confirmed August 1 as a hard cutoff, warning that if no agreement is reached, tariffs would automatically apply from that date onward.
Trump communicated the tariffs in formal letters to European Commission President Ursula von der Leyen and leaders in Mexico, Canada, Japan and Brazil.
Some products will face blanket rates between 20% and 50%, including a 50% duty on copper.
Lutnick also indicated that President Trump is preparing to renegotiate the United States-Mexico-Canada Agreement (USMCA), which was signed during his first term. While USMCA-compliant goods are currently exempt, the deal could face changes within a year, he said.
The administration’s trade posture marks a renewed effort to recalibrate global agreements in line with Trump’s America First agenda ahead of the 2026 midterm elections.
