President Donald Trump speaks in a dinner for Republican Senators at the White House at Washington, DC on July 18, 2025.
Elisen Robert through Getty Image for Photo/Washington Post
The US has indicated that it will not allow the high tariff on the European Union to go on the August 1 deadline as the block fights to a deal on time.
Over the weekend, US Commerce Secretary Howard Lutynik stated that he was confident that a trade deal could be killed with the European Union, but warned that the deadline for the base line has been fixed at 30% tariff.
“This is a difficult time limit, so on 1 August, new tariff rates will come,” Lutnik said on Sunday CBS News When asked about the time limit for him European Union Tariff.
He indicated that negotiations may continue after this date, however, looking at: “These are the two biggest trading partners in the world, talking to each other. We will make a deal. I am confident that we will do a deal.”
“Nothing stops countries from talking to us after 1 August, but they are going to start paying tariffs on 1 August,” He said.
European Union has indicated It is preparing a retaliation against the US if punitive trade tariffs are installed, but the lonnik dismissed, saying, “They are just not going to do so.”
The final-dialogue to reach a trade agreement continues, the European Union hopes that it can interact at a low tariff rate. The block had expected that it could make a uniform compromise for the UK, the first country to come on a trade agreement with the US which includes 10% baseline tariff in the deal With some cavet related to car, steel and aerospace imports,
But economists and analysts are fast Confused About the ability to reach a similar outline of Brussels.
For one, The European Union has a much more difficult relationship with US President Donald Trump than BritainTrump has often disturbed what has been seen by the European Union.
As European UnionThe total trade between the European Union and the US was 1.68 trillion euros ($ 1.96 trillion) in 2024. While the European Union ran a trade surplus while talking about goods, it recorded a loss in services. Overall, the block had a surplus of about 50 billion euros last year, when both goods and services are taken into consideration.
Last Friday, the Financial Times reported that the minimum tariffs on the import of the European Union in any deal with the Trump block were insisting on 15% to 20%. The President was also allegedly happy to have duties at 25%on the auto sector, a step that would make car exporters especially difficult in Germany.
The harsh trend of the White House towards Brussels has inspired policy makers to consider how they would respond to 30% tariffs, which will be a standing increase with the current 10% duty to be implemented in April.
An European Union official told the CNBC that except for Hungary, there has been a clear change in the mood about the possible response of BLOC between all European Union member states, whose leader, Victor Orban, is a trump ally.
The block is preparing counterons against the US, the European Union leaders repeatedly said that if there is no agreement with the US, they can be implemented.
Long -standing levies on imports from the US of 21 billion euros are currently in a break till 6 August, and the European Commission has prepared the second round of tariffs target targeting 72 billion euros.
Imports may be affected from clothes to agricultural products and food and beverage items.
Meanwhile, the Wall Street Journal and Bloomberg reported that the increasing number of members has indicated its support for the European Union that deploys its anti-its own tools. It is the most powerful trade tool of BLOC and will give the European Commission extensive powers to retaliate against the US.
-CNBC’s Matthew Ward-Perkins contributed to this report.