On Sunday, Howard Lutnick, the Commerce Secretary, stated that August 1 is the “hard deadline” for countries to begin paying tariffs to the United States.
What Happened: Lutnick also noted that nations can still engage in discussions with the U.S. after this date.
“That’s a hard deadline, so on August 1, the new tariff rates will come in,” he told CBS News, adding, “nothing stops countries from talking to us after August 1.”
President Donald Trump initially announced these tariffs on April 2. Despite several shifts in the deadline, the White House has now confirmed August 1 as the final date.
Lutnick also mentioned that smaller countries, including those in Latin America, the Caribbean, and Africa, will face a baseline tariff of 10%.
Trump had previously hinted at baseline tariff rates of over 10% for these nations. He also indicated that letters detailing the new tariff rates would be sent to smaller countries soon.
Lutnick’s remarks follow letters sent by Trump earlier this month to U.S. trading partners, informing them of new tariff rates that could reach up to 40% for certain countries. The announcement triggered a wave of last-minute negotiations as nations scrambled to secure lower rates.
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Why It Matters: The announcement of the hard deadline for tariffs comes amid a series of tariff-related developments. Trump had previously proposed a blanket tariff rate of 15%-20% on most nations, a significant increase from the current 10% base, following an unexpected federal budget surplus in June, largely attributed to a surge in tariff receipts.
These inconsistent policies have raised concerns, with Sen. Elizabeth Warren (D-Mass.) voicing worries over the long-term impact of Trump’s tariffs on global partnerships.
Trump had also previously indicated that he would be sending “take it or leave it” tariff letters to 12 countries, detailing the tariff rates they would face on exports to the U.S. These offers were set to be dispatched in early July, outlining the tariff levels that would apply to the countries’ exports to the U.S.
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