Trump Set to Shake Up USMCA: Commerce Secretary Lutnick Confirms Renegotiation Plans

Brace for impact—America's trade playbook is getting a rewrite.

Commerce Secretary Lutnick drops the bomb: Trump's team is sharpening their knives for USMCA renegotiations. No details spared, no trade clause safe.

Wall Street's already placing bets—because nothing fuels markets like geopolitical uncertainty and the sweet smell of fresh tariffs.

Lutnick says the next 2 weeks will be historic

He went on to forecast that the next 2 weeks WOULD be historic for U.S. trade. The administration has warned 25 trading partners that if they do not reach deals by August 1, they will face higher tariffs on American imports.

“The next two weeks are going to be weeks for the record books,” Lutnick told moderator Margaret Brennan. “President Trump is going to deliver for the American people.”

Despite months of negotiations, only a few formal agreements have emerged so far. A CBS News poll released Sunday found that 61 percent of Americans think the US administration focuses too heavily on tariffs. Lutnick countered that the tariff notices have pushed reluctant countries to the bargaining table.

“That’s gotten these countries to the table, and they are going to open their markets or they’re going to pay the tariff,” he said.

Smaller nations will likely be faced with a 10 percent baseline fee on their imports, while larger partners could see steeper rates. One key negotiation involves the EU, which last year exchanged $975.9 billion in goods, more than with any single nation.

In April, Trump briefly imposed 20 percent duties on EU exports. He now warns he will raise those to 30 percent for anything arriving after August 1 if no deal is reached. European leaders expect to strike an agreement but have prepared their own retaliatory measures set to begin on the same date.

“I am confident we’ll get a deal done,” Lutnick said after speaking that morning with a senior EU trade official.

North America’s two largest U.S. partners, Mexico and Canada, were also told to brace for higher levies, 35 percent for Canadian goods and 30 percent for Mexican goods, up from the 25 percent rate imposed early in Trump’s term. Trump has linked those tariffs to efforts to curb illegal border crossings and fentanyl trafficking.

Lutnick noted that while Canada has tightened its controls, little fentanyl crosses from the north. He said the president’s message is clear: “Stop this fentanyl and close the border, or tariffs will remain.”

However, products under the USMCA are exempt from these new charges, sparing most items imported through the US and Mexico-Canada borders from fresh duties.

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