US commerce secretary Lutnick 'confident we'll get a deal done' with EU

Lutnick says 'plenty of room' for agreement after call with European trade negotiators 

US 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. Picture: AP Photo/Evan Vucci

US 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," Mr Lutnick said in an interview with CBS' "Face the Nation."

US 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 US trading partners failed to reach a comprehensive trade deal.

Mr 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.

Mr 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.

Mr Lutnick also said he expected Mr Trump to renegotiate the US-Mexico-Canada Agreement (USMCA) signed during Mr 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," Mr Lutnick said.

Reuters