The United States Secretary of Commerce, Howard Lutnick, has announced that trade negotiations with other countries will be completed on Friday, August 1, excluding China and the European Union.
In an interview with the U.S. financial news channel CNBC on Tuesday, July 29, Lutnick stated that President Trump will make a decision this week regarding trade agreements with countries outside of China and Europe, with the deadline set for August 1 rapidly approaching.
Lutnick mentioned that a framework agreement was reached between the United States and the European Union on Sunday, with discussions still ongoing regarding issues such as steel, aluminum, digital services regulation, while the ongoing U.S.-China trade negotiations are considered a separate matter.
“I will have the personnel working with the Chinese brief you on the progress and achievements they have made. I leave that to them,” Lutnick said.
“As for the rest of the world, we will finalize all work before Friday. Friday is coming soon. So, you should anticipate that August 1 is the date we set for all tariffs, and action will start thereafter,” he added.
When asked about the remaining uncertainties surrounding the U.S.-EU agreement, Lutnick stated that the Trump administration is striving to ensure quick completion of the negotiations.
He highlighted that the automotive and pharmaceutical industries are key components of the U.S.-EU negotiations. Regarding the automotive sector, Lutnick mentioned that President Trump has made it clear that companies must manufacture in the United States to sell in the country. Once the EU realized this unstoppable trend, they ultimately agreed to pay a 15% tariff, as they do not want all companies to withdraw from Europe and relocate to the U.S.
Additionally, Europe is home to several major pharmaceutical companies, and their drugs entering the U.S. will fall under a 15% tariff.
“For them, including pharmaceuticals in the agreement and setting a 15% tariff is crucial because President Trump will unveil a drug policy in the next two weeks, and the tax rates will be higher,” the Secretary of Commerce emphasized. “Basically, if you are not manufacturing in the U.S. – we are a country that pays for pharmaceuticals – you will have to pay high tariffs.”