Lutnick downplays impact of tariff court ruling on US, EU talks

By Ted Hesson

WASHINGTON (Reuters) -U.S. Commerce Secretary Howard Lutnick downplayed the impact of legal uncertainty around U.S. tariffs on negotiations with the European Union during an interview with Fox News Sunday, saying talks were ongoing.

Lutnick was asked about a Reuters report quoting an unnamed EU official close to negotiations who said the legal uncertainty of the tariffs in the U.S. gave the E.U. "extra leverage."

"You can't listen to silly people making silly comments," Lutnick said. "All of the countries that are negotiating with us understand the power of Donald Trump and his ability to protect the American worker."

A U.S. trade court blocked most of President Donald Trump's tariffs in a sweeping ruling last week that found the president overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. A U.S. federal appeals court paused that ruling a day later, allowing the tariffs to go into effect while it considered an appeal by the Trump administration.

Lutnick said the ruling "maybe cost us a week, but then everybody came right back to the table."

Trump in late May threatened 50% tariffs on all European goods by June 1 but days later delayed the effective date to July 9 to allow for time to negotiate.

Trump also said on Friday that he would increase tariffs on imported steel and aluminum to 50% from 25%, leading the European Commission on Saturday to say it could consider countermeasures.

Speaking on ABC News' 'This Week,' White House economic adviser Kevin Hassett said the U.S. needed to protect its steel industry for national security reasons in light of economic rival China's steel production.

"We have to show strength," Hassett said. "We have to have a steel industry that's ready for American defense."

(Reporting by Ted Hesson in Washington; Additional reporting by Doina Chiacu; Editing by Caitlin Webber in Washington)