Howard Lutnick Warns: US-EU Trade Deal Within Reach—But August 1 Tariff Deadline Looms Large

Wall Street's favorite dealmaker just dropped a ticking time bomb on global markets.

The countdown begins: Howard Lutnick's latest prognosis puts a hard expiration date on trade peace—August 1 or face the tariff music. No extensions, no excuses.

Behind the brinkmanship: While Brussels and Washington exchange pleasantries, corporate treasuries are quietly hedging against another 'trade war surprise'—because nothing says 'diplomatic progress' like contingency plans.

The cynical take: Nothing unites politicians faster than mutually assured revenue streams. These 'tariffs' aren't protectionism—they're just politically acceptable rent-seeking.

Trump’s hard line on trade continues

The WHITE House took formal steps to notify multiple trading partners by sending official letters. One went to European Commission President Ursula von der Leyen, confirming the incoming tariffs. Others were addressed to Canada, Mexico, Japan, and Brazil, each laying out tariff rates ranging between 20% and 50%. Copper imports were singled out with a specific 50% tariff, hitting harder than others.

Howard also said that smaller countries like those in Latin America, the Caribbean, and Africa would start with a 10% base tariff. That offer lines up with Trump’s comment last week that a blanket tariff for “all of them” would probably be “a little over 10%.” These smaller nations had been waiting for a confirmed rate after TRUMP floated higher numbers earlier this month.

But when it comes to the larger economies, the message is different. “The bigger economies will either open themselves up or they’ll pay a fair tariff to America,” Howard said, framing the approach as non-negotiable unless they come to the table. While the White House hasn’t clarified if the EU will receive a reduced rate, letters sent and posted by Trump on Truth Social have already pushed governments to re-engage in last-minute talks.

There was also talk of reviving the United States-Mexico-Canada Agreement. Although goods that currently comply with USMCA are exempt from these new tariffs, Howard said Trump wants to take another look at the deal.

“I think the president is absolutely going to renegotiate USMCA,” he said. “But that’s a year from today.” So for now, Canada and Mexico get to sidestep the August 1 tariffs—as long as they stay within the lines of the old agreement.

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