Published by Global Banking & Finance Review®
Posted on July 20, 2025
2 min readLast updated: January 22, 2026
Commerce Secretary Lutnick is confident in securing a US-EU trade deal before the August 1 deadline, when tariffs are set to begin.
WASHINGTON (Reuters) -U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident the United States can secure a trade deal with the European Union, but August 1 is a hard deadline for tariffs to kick in.
Lutnick said he had just gotten off the phone with European trade negotiators and there was "plenty of room" for agreement.
"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," Lutnick said in an interview with CBS' "Face the Nation."
U.S. President Donald Trump threatened on July 12 to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal.
Lutnick said that was a hard deadline.
"Nothing stops countries from talking to us after August 1, but they're going to start paying the tariffs on August 1," he said on CBS.
Trump announced the tariffs in a letter to European Commission President Ursula von der Leyen. He sent letters to other trading partners including Mexico, Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% to 50%, as well as a 50% tariff on copper.
Lutnick also said he expected Trump to renegotiate the United States-Mexico-Canada Agreement (USMCA) signed during Trump's first White House term in 2017-21.
Barring any major changes, USMCA-compliant goods from Mexico and Canada are exempt from tariffs.
"I think the president is absolutely going to renegotiate USMCA, but that's a year from today," Lutnick said.
(Reporting by Doina Chiacu; Editing by Chizu Nomiyama and Nia Williams)
The USMCA, or United States-Mexico-Canada Agreement, is a trade agreement that replaced NAFTA, aimed at enhancing trade relations and economic cooperation among the three countries.
Tariffs on imports are taxes levied on goods brought into a country, which can affect pricing, trade balances, and international relations.
Trade negotiation is the process where countries discuss and agree on the terms of trade agreements, including tariffs, quotas, and trade regulations.
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