Commerce Secretary Howard Lutnick indicated on Monday that the Trump administration is likely to extend the suspension of tariffs on China as trade talks progress, but noted that South Korea is very eager to finalize a deal.
In an interview with Brett Beyer on Fox News’ Special Report, Lutnick remarked that while discussions are ongoing, the ultimate decision rests with President Trump.
Back in May, Washington and Beijing agreed to halt a 90-day trade conflict, reducing tariffs significantly—from 145% to 30% for American goods and from 125% to 10% for Chinese goods.
This truce is set to end on August 12.
When questioned about reports suggesting both countries are attempting to maintain the suspension, Lutnick mentioned it seems “highly likely,” though the final call is up to Trump.
He expressed confidence that those negotiating with China are mindful of how Trump might approach the situation, given his positive rapport with Chinese President Xi Jinping, stating, “I think we’ll leave it to Donald Trump to decide.”
On whether a further 90-day suspension is probable, Lutnick said, “Certainly, that seems likely, but let’s leave it to President Trump to decide.”
He also pointed out that negotiations regarding TikTok are separate from other Chinese transactions.
Bytedance, TikTok’s parent company based in China, is under a deadline of September 17 to sell its American operations or face a ban in the U.S.
Meanwhile, South Korea is aiming to secure a trade agreement before Trump’s tariffs, sometimes referred to as “liberation date” tariffs, are implemented on August 1.
Lutnick shared how the Koreans traveled to Scotland for talks with him, further emphasizing just how invested they are in reaching an agreement.
The Secretary of Commerce also mentioned that officials within the Trump administration feel the president is firmly in control of these negotiations. While he plans to review some transactions before the August 1 deadline, his primary focus is on determining tariff rates for countries yet to finalize agreements with the U.S.
Up to now, Trump has reduced preliminary tariff agreements with several nations, including the UK, Vietnam, Japan, Indonesia, the Philippines, and the European Union.
The president stated on Sunday that there would be no postponement of the August 1 deadline.
