President Donald Trump speaks on July 18, 2025 at dinner for Republican senators in the White House in Washington, DC.
Photo by Allison Robbert/For Washington Post via Getty Images
The United States has signaled that it will not relieve higher tariffs in the European Union on August 1st, since the block is fighting to hit a deal in time.
At the weekend, the US Minister of Trade Howard Lutnick said that he was confident that a trade agreement could be made with the European Union, however, warned that the period for a tariff of 30% was set.
“This is a tough period, so the new collective bargaining prices will be received on August 1st,” said Lutnick on Sunday in CBS News when he was asked about the deadline for his EU tariffs.
He has signaled that the conversations were able to continue after this date: “These are the two largest trading partners in the world who are talking to each other. We will complete a deal. I am confident that we will complete a deal.”
“Nothing prevents the countries from talking to us after August 1st, but they will start paying the tariffs on August 1st,” he added.
The EU has pointed out that they are preparing retaliation against the United States when criminal trade tariffs are raised, but Lutnick rejected this saying: “You just won't do that.”
Last-ditch lectures to achieve a trade agreement are ongoing, whereby the EU hopes that it can negotiate a lower tariff rate. The block had hoped that there could be a similar pact as the Great Britain that was the first country that came to a trade agreement with the USA that comprises a deal with a basic tariff of 10% with some restrictions on car, steel and aerospace imports.
However, economists and analysts are increasingly skeptical of Brüssel's ability to achieve a similar framework.
On the one hand, the EU has a much more difficult relationship with US President Donald Trump than Great Britain. Trump has often complained about what he sees as an unbalanced trade relationship and unfair trade practices that the EU denies.
According to the European Council, the overall trade between the EU and the USA in 2024 was EUR 1.68 trillion (1.96 trillion dollars). While the EU carried out a trade surplus, it recorded a deficit of the services. Overall, the block had a surplus of around 50 billion euros last year if both goods and services are taken into account.
Last Friday, the Financial Times reported that Trump was pressing for a minimum tariff of 15% to 20% in every deal with the block. According to reports, the president was also happy to keep the duties in the car sector at 25%, a step that would particularly hurt the exporters of the cars in Germany.
The apparently harder attitude of the White House opposite Brussels has prompted political decision -makers to check how they will react to a 30% tariff that came into force a steep hike from the current 10% suspension in April.
An EU official said CNBC that the potential reaction of the block among all EU member states, with the exception of Hungary, whose guide Viktor Orban, has changed a clear mood that is a Trump ally.
The block has prepared countermeasures against the United States, whereby the EU guide could be implemented repeatedly if no agreement is reached with the United States.
Currently, longest taxes for imports from the USA worth 21 billion euros are a break, and the European Commission has prepared a second round of tariffs for trading worth 72 billion euros.
Imports ranging from clothing to agricultural products to food and drinks can be affected.
In the meantime, the Wall Street Journal and Bloomberg reported that more and more members have signaled their support for the EU who are using their anti-compulsory instrument. This is the most powerful trade instrument of the block and dignity of the European Commission giving broad powers to take retribution measures against the United States
-Matthew Ward-perkins from CNBC contributed to this report.
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