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Commerce Secretary Howard Lutnick said Sunday the Biden administration is holding firm to its Aug. 1 deadline for new tariffs on dozens of U.S. trading partners, expressing optimism that President Donald Trump’s aggressive trade strategy will yield major new agreements in the coming days.
“The next two weeks are going to be weeks for the record books,” Lutnick said on CBS’ Face the Nation.“President Trump is going to deliver for the American people.”
Trump has sent letters to 25 countries — including Canada, Mexico, and the European Union — warning of significantly higher tariffs unless new trade agreements are reached before August. The warning follows a 90-day delay Trump issued in April, intended to allow time for negotiations.
According to Lutnick, smaller nations will face a 10% baseline tariff, while larger economies like the EU, Canada, and Mexico face far steeper increases — up to 35% in some cases.
Pressure Tactics Drive Trade Talks
Lutnick credited Trump’s tariff warnings for pushing countries back to the negotiating table, claiming “they are going to open their markets or they’re going to pay the tariff.”
Talks with the European Union are among the most closely watched, as the U.S. traded $975.9 billion in goods with the EU bloc last year. Trump has proposed increasing tariffs on European goods to 30%, up from a temporary 20% rate imposed in April. EU officials have warned they will retaliate with tariffs of their own on American goods if no agreement is reached.
“I am confident we’ll get a deal done,” Lutnick said, noting he spoke with a top EU trade official on Sunday morning.
Canada, Mexico Threatened Over Fentanyl, Border
The administration is also targeting Canada and Mexico, with proposed tariff hikes of 35% and 30%, respectively. Trump has linked the proposed increases to issues of fentanyl trafficking and border security, though Canadian officials dispute the relevance, noting little fentanyl enters through their border.
Goods covered under the U.S.-Mexico-Canada Agreement (USMCA) — negotiated during Trump’s first term — are exempt from the tariffs, meaning most cross-border goods won’t be affected. Still, Trump’s team has used the threat of tariffs as leverage in broader discussions on immigration and drug enforcement.
“If [Canada] doesn’t stop this fentanyl and close the border, tariffs will stay in place,” Lutnick warned.
Tariffs Set to Take Effect Aug. 1
Lutnick reiterated that Aug. 1 is a “hard deadline,” with no extensions planned. Trump originally proposed similar tariffs in April on “Liberation Day,” then delayed enforcement for 90 days. That window expires at the end of July.
“We’re going to start collecting higher tariffs at the start of next month,” Lutnick said. However, “nothing stops countries from talking to us after August 1st.”
Economic Concerns Mount
While Trump maintains that tariffs will boost American manufacturing and reduce trade deficits, some economists — and even members of his own administration — have raised alarms.
Markets have responded nervously to the tariff threats, and inflation is showing signs of acceleration. Consumer prices rose 2.7% year-over-year last month, up from 2.4% the month prior.
Still, Lutnick dismissed concerns over inflation, saying, “I think you’re going to see inflation stay right where it is,” and promised “shockingly low” prices for American consumers.
“The idea that these importers are more important than the people who employ Americans — I think it’s just wrong,” Lutnick said.
Lutnick Slams Fed Chair Powell
In a surprising turn, Lutnick also took aim at Federal Reserve Chair Jerome Powell, echoing President Trump’s frustration over the Fed’s refusal to cut interest rates.
“I don’t know why he’s torturing America this way,” Lutnick said. “He’s doing the worst job.”
The Fed has kept rates steady, citing concerns that premature cuts could reignite inflation. Trump has reportedly considered firing Powell — a legally murky proposition — though he later said he wouldn’t act unless there’s “fraud.”
Lutnick declined to comment on Powell’s job security, saying that decision rests with the president.
With just two weeks until the tariff deadline, U.S. trading partners are scrambling to strike deals that could avert costly economic consequences. But Lutnick made clear Sunday: “This time, we’re serious.”
