U.S. Sticks To Aug. 1st Tariff Deadline As EU Seeks Deal And Threatens Retaliation

The U.S. is holding firm on its Aug. 1 deadline to impose a 30% tariff on European Union imports, despite ongoing negotiations, according to CNBC. Commerce Secretary Howard Lutnick said Sunday that while he’s confident a deal will eventually be reached, the tariff hike will begin as scheduled. Talks could continue after the deadline, but tariffs will take effect regardless. The EU has warned of retaliatory measures, including the suspension of tariffs on U.S. imports worth nearly $24.5 billion, and is preparing to deploy its anti-coercion instrument for broader retaliation. According to the Financial Times, Trump is reportedly pushing for a minimum tariff of 15% to 20% on EU imports in any trade deal. He also supports maintaining a 25% duty on autos, which would heavily impact German carmakers. Economists warn new tariffs could hurt EU exports and reignite U.S. inflation fears.