Trump Commerce Secretary Lutnick Confident Of Sealing ‘Great’ EU Trade Deal, Calls August 1 ‘Hard Deadline’

Commerce Secretary Howard Lutnick said on Sunday that the European Union (EU) may not resort to retaliatory measures concerning the ongoing tariff issues between the U.S. and the 27-nation bloc.

Speaking on CBS News’ “Face The Nation” on Sunday, Lutnick said he was on the phone with European trade negotiators and expressed confidence that a deal would be reached. “I am confident we'll get a deal done,” he said, adding that “it will be great for America.”

Earlier this month, Trump threatened 30% levies on imports from the region in a letter to the European Commission (EC) President, Ursula von der Leyen. The EU as a group is America’s biggest trading partner. 

Despite tariff uncertainty, the stock markets of the U.S. and Europe have continued to press ahead resolutely. The SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, has gained 7.72% this year, while the iShares Europe ETF (IEV) has gained over 23%.

Sentiment toward SPY and IEV ETFs remained 'neutral' on Stocktwits late Sunday, with the message volume at 'normal' levels.

Officials of the bloc’s member nations have voiced their opposition to U.S. tariff threats and mulled retaliatory tariffs on goods from across the Atlantic as well as levies on services. EU officials also discussed using an anti-coercion instrument (ACI) to ward off tariff threats. 

When asked whether the Trump administration’s Aug. 1 deadline was a hard one or whether it would slide, Lutnick said, “No, no, that's a hard deadline.”

“So, on August 1, the new tariff rates will come in. But, nothing stops countries from talking to us after August 1, but they're going to start paying the tariffs on August 1.” 

The tariff levies would help pay off the U.S.’s deficit, he said, adding that “This is going to make America stronger.”

Lutnick also explored the current state of affairs between the U.S. and its North American neighbors, Canada and Mexico. “We have a plan called USMCA. U.S.-Mexico-Canada Agreement. Virtually 75% of all goods coming from Mexico and Canada already come in tariff-free,” he said.

“The President said, ‘Look, unless you stop this fentanyl and close the border, we're just going to keep tariffs on the other 25%’ and that's what he has on.”

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