Howard Lutnick said a US-EU trade deal is likely but August 1 is the hard deadline for new tariffs

Howard Lutnick, the U.S. Commerce Secretary, said on Sunday that a trade agreement between the United States and the European Union is still within reach, but the clock stops on August 1.

That’s the final deadline for everyone, and tariffs are coming if there’s no deal. Speaking to CBS’ Face the Nation, Howard said he had just gotten off a call with European trade negotiators and believed there was still “plenty of room” for an 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,” he told the host.

The urgency stems from President Donald Trump’s announcement on July 12, where he threatened to slap a 30% tariff on imports from the EU and Mexico starting August 1. That followed several rounds of stalled negotiations with top trade allies. “Nothing stops countries from talking to us after August 1,” Howard said, but made it clear they’d still be “paying the tariffs on August 1.”

Trump’s hard line on trade continues

The White House took formal steps to notify multiple trading partners by sending official letters. One went to European Commission President Ursula von der Leyen, confirming the incoming tariffs. Others were addressed to Canada, Mexico, Japan, and Brazil, each laying out tariff rates ranging between 20% and 50%. Copper imports were singled out with a specific 50% tariff, hitting harder than others.

Howard also said that smaller countries like those in Latin America, the Caribbean, and Africa would start with a 10% base tariff. That offer lines up with Trump’s comment last week that a blanket tariff for “all of them” would probably be “a little over 10%.” These smaller nations had been waiting for a confirmed rate after Trump floated higher numbers earlier this month.

But when it comes to the larger economies, the message is different. “The bigger economies will either open themselves up or they’ll pay a fair tariff to America,” Howard said, framing the approach as non-negotiable unless they come to the table. While the White House hasn’t clarified if the EU will receive a reduced rate, letters sent and posted by Trump on Truth Social have already pushed governments to re-engage in last-minute talks.

There was also talk of reviving the United States-Mexico-Canada Agreement. Although goods that currently comply with USMCA are exempt from these new tariffs, Howard said Trump wants to take another look at the deal.

“I think the president is absolutely going to renegotiate USMCA,” he said. “But that’s a year from today.” So for now, Canada and Mexico get to sidestep the August 1 tariffs—as long as they stay within the lines of the old agreement.

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