Upcoming Tariffs Set by Trump
President Trump’s “liberation day” tariffs, which are slated to start this Friday, will proceed as planned, according to Howard Lutnick, who spoke on Sunday.
“There won’t be any extensions or grace periods. Starting August 1st, tariffs will be established, and Customs will begin collecting fees,” Lutnick stated on Fox News Sunday.
He added, “Naturally, people can still engage with President Trump after that date. He remains open to discussions. Whether those conversations result in satisfaction is another story.”
Trump previously set a 10% baseline tariff on all imports into the US, and during the April 2nd announcement for “liberation day,” he rolled out a series of tariffs affecting nearly every country.
Originally, these customized rates were supposed to start on April 9 but were pushed back twice—first for 90 days and then to August 1.
Since that time, Trump has moved forward with trade deals involving the UK, Vietnam, Japan, Indonesia, and the Philippines.
Additionally, the Trump administration has suggested a temporary halt to tariffs with China, aiming for broader agreements by August 12.
Lutnick stressed that Trump is focusing on building “a massive economy,” which includes reaching out to the European Union. Trump met with European Commission President Ursula von der Leyen during his recent four-day visit to the UK.
“Our team set the stage, but Donald Trump handles the negotiations himself,” he noted.
The EU, which consists of 27 countries, represents one of America’s largest trade partners. Thus far, negotiations with the EU have been challenging for Trump.
Currently, Trump is applying various tariffs, such as a 25% rate on automobiles, aluminum, and steel, as well as 25% on imports from Canada and Mexico that don’t comply with the US-Mexico-Canada Agreement. He has also been contemplating increasing tariffs on products from Canada and Mexico.
Lutnick spoke highly of the revenue generated by these tariffs.
He mentioned, “Very few products actually trade at a standard price. We’re possibly looking at $700 to $800 billion in revenue, and maybe inching toward $1 trillion, which could help reduce the deficit.”
Regarding taxes, he mused, “There’s no tax on hints, no tax on overtime, or on social security. If you look at the bigger picture, it’s a positive situation.”
Trump is also adjusting tariffs in international contexts. Recently, he informed leaders in Cambodia and Thailand that US trade negotiations would halt unless they resolve a long-standing border conflict.
On July 15, the president warned Russia of imposing 100% secondary tariffs on its oil if a deal with Ukraine is not reached. This could further complicate US trade relations, particularly with China and India, both of which utilize inexpensive Russian oil amid existing sanctions.
