"This deadline is firm. Import taxes will take effect on 1/8," Lutnick said on CBS News on 20/7.
President Donald Trump had twice delayed the deadline for imposing retaliatory tariffs on trading partners after announcing the policy on 2/4. The first extension was to 9/7, and the current deadline is the beginning of August.
However, Lutnick emphasized that the start of tax collection does not mean "the US will not continue negotiations after this date." He also expressed confidence in reaching a trade agreement with the European Union (EU). "The world's two largest trading partners are negotiating with each other. We will reach an agreement. I'm confident of that," he stated.
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US Treasury Secretary Howard Lutnick at the White House in May 2025. Photo: AP |
US Treasury Secretary Howard Lutnick at the White House in May 2025. Photo: AP
Lutnick also said that smaller countries "in Latin America, the Caribbean, and Africa" will only be subject to a base tax rate of 10%. This comment may offer relief to many countries that have not yet received a tax notification from the US. Last week, Trump said the general rate for smaller trading partners would be "a little over 10%".
Meanwhile, Lutnick affirmed that "major partners will have to open their markets or pay fair taxes to the US." He also predicted that President Trump would renegotiate the US-Mexico-Canada Agreement (USMCA), which the three countries signed during his first term.
On 7/7, the US began sending tax notifications to its trading partners. So far, 26 countries have been notified of the new import taxes when selling goods to the US, starting 1/8. The new rates range from 19% to 50%, mostly equal to or similar to the levels announced on 2/4. Currently, all countries face a 10% tax when selling goods to the US.
Many trading partners are accelerating negotiations with the US to reduce their tax burden. To date, the US has announced agreements with the UK, China, Vietnam, and Indonesia.
Ha Thu (CNBC, Reuters)
