Commerce Secretary Lutnick says he is confident U.S. will secure trade deal with EU
By Reuters
WASHINGTON,
July 20 (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."
The EU has expressed disappointment with the latest discussions and is considering options in negotiations and potential retaliation.
- A senior EU diplomat was quoted as saying, "We don’t want a trade war, but we don’t know if the U.S. will leave us a choice."
- The U.S. has already sent letters to over 20 trade partners outlining tariffs on goods imported from their countries, setting new baseline tariff levels at 20% to 40% — except for a 50% levy on goods from Brazil.
Japan's ruling coalition is on track to lose its majority in the upper house, which could complicate trade negotiations with the U.S.
- South Korea's national security adviser is heading to Washington for talks, and Japan's tariff negotiator is set to hold more trade talks in the U.S. next week.
- The U.S. has also announced a 35% tariff on Canadian goods and promised 30% duties on Mexico and the EU.
Retailers are struggling to prepare for the holiday season, uncertain about the availability and tariffs on imported products like toys and artificial Christmas trees.
- The U.S. is also set to impose a 10% universal tariff on all imports starting August 1, along with reciprocal tariffs on imported products from various countries.
- Japanese carmakers could face billions in losses due to U.S. tariffs, with a looming deadline for negotiations.
- The U.S. is following formal processes of Bilateral Trade Agreement (BTA) negotiations with India, with an effective deadline by fall of 2025.
- The U.S. is also pushing for higher blanket tariffs on imports from the European Union, throwing a wrench in negotiations ahead of an August 1 deadline for sweeping duties to take effect.
- The U.S. has already sent letters to over 150 smaller U.S. trade partners, setting blanket tariff rates for that large group.
On July 20, U.S. Commerce Secretary Howard Lutnick criticized Federal Reserve Chair Jerome Powell for maintaining high interest rates ahead of an August 1 tariff deadline.
- This situation is poised to impact ongoing trade agreements.
- The looming deadline may necessitate swift U.S. trade negotiations with smaller countries while renegotiating existing agreements, potentially affecting global markets.
Market reactions are mixed, with various industries preparing for potential volatility.
- Jerome Powell reaffirmed a wait-and-see stance, influencing sentiments.
- Lutnick expressed confidence in imminent agreements, underscoring the administration's proactive approach to trade.
"There are so many coming... You’re going to see deal after deal, they’re going to start coming next week and the week after and the week after. We’ve got them in the hopper."
The August 1 deadline sets a 10% tariff on smaller countries without deals. This adds urgency to upcoming talks and could prompt immediate policy shifts if unresolved. However, the expectation from leadership is that deals are forthcoming.
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