Trade Negotiations with the EU Highlighted by Commerce Secretary

Commerce Secretary Howard Lutnick recently shared insights in an interview that President Trump “set the stage” for what could become a significant trade agreement with the European Union this July.

“I prepare everything, and the president considers me the best at setting the stage,” Lutnick mentioned on his podcast, “Pod Force One.”

“My role is to ensure everything is in place for him to seal the deal and maximize the benefits. I don’t hold back. I’m not one to take it easy, I’ll leverage every opportunity,” he added.

This approach led to a contract being finalized after just a brief 75-minute discussion at Trump’s Turnberry Resort in Scotland.

“He embodies both softness and firmness in negotiations,” Lutnick described the atmosphere of those trade talks. “On one hand, he’s warm and welcoming, and on the other, he can be very direct and forceful. During an EU meeting, he even remarked, ‘It’s okay, I don’t think we’ll manage that.’ “

The terms of the contract involved European countries committing to buy $750 billion in American energy products and investing $600 billion in U.S. industries and military equipment.

“I think this is the largest deal ever,” Trump exclaimed afterward. European Commission Chairman Ursula von der Leyen acknowledged him as “a tough negotiator and a manufacturer.”

During the discussion, Lutnick explained how veteran German politicians had helped Von der Leyen recognize her “superpower”—the ability to reject inadequate proposals from the U.S. president.

“If you want to negotiate with him,” Lutnick advised, “Leverage that power.” She replied, ‘What does that mean?’ and he reminded her, ‘You’re a strong, authoritative leader.’

“Don’t say ‘No,’” Lutnick cautioned EU leaders. “If you confront Donald Trump, he will come out on top. There’s a reason why he’s one of the most successful businessmen globally and serves as the U.S. president. It’s better to work together with him than against him.”

The agreement also stipulated a 15% tariff on many European goods sent to the U.S., even though U.S. exports would drop to zero.

When Trump suggested that the U.S. and EU would formalize an agreement later, Lutnick jumped in, “Well, we’re here now. Why not take another shot? Do you really want to cut a deal or wait it out?”

At that point, von der Leyen quickly responded, “No, let’s finalize a deal.”

Lutnick noted that the EU understood the need to address the existing $235 billion trade surplus with the U.S., recognizing that their selling more goods to the U.S. might not be sustainable.

“They understood Trump would take action to correct it. We can adjust things to ensure they maintain their jobs and industries,” he explained.

Before the meeting in Scotland, Lutnick had reached out to EU leaders, including French President Emmanuel Macron.

“She was hesitant about negotiations, so we discussed how she could successfully engage with Donald Trump,” he noted.

“Going on the offensive against Trump only energizes him. He’s never one to back down,” Lutnick pointed out.

In other parts of the interview, Lutnick revealed that he manages about five hours of sleep a night, even less than Trump.

“He operates like a whirlwind,” Lutnick remarked. “You come in, and he’s quick to respond.”

“In every trade deal, he’s the one driving it—not me,” he stressed. “I may set the stage, but he often secures a better deal simply because he is Donald Trump and the President of the United States. He’s an extraordinary negotiator.”