US-EU Trade Deal Deadline Looms as Tariffs Threaten Global Markets

Howard Lutnick, speaking on CBS' Face the Nation, emphasized that August 1 remains the hard deadline for a US-EU trade deal before new tariffs take effect. "These are the two biggest trading partners in the world," he said, expressing confidence in an agreement despite stalled negotiations. The WHITE House has formally notified trading partners, including the EU, Canada, and Mexico, of impending tariffs ranging from 20% to 50%, with copper imports facing the steepest levy.

Smaller economies in Latin America, Africa, and the Caribbean would start with a 10% base rate. While Lutnick left room for post-deadline talks, he stressed that tariffs would still apply on August 1 absent a deal. The move reflects the Trump administration's continued hardline stance on trade, which could Ripple through commodity markets and risk-sensitive assets.