Muto urges US to swiftly cut tariffs regarding Aug 1 deadline

Muto urges US to swiftly cut tariffs regarding Aug 1 deadline

July 02, 2025

In a bid to avert the looming tariff hike, the European Union (EU) is urging the United States to swiftly cut tariffs before the August 1 deadline. Commerce Secretary Howard Lutnick has reiterated that the Aug. 1 tariffs are set in stone and will not be delayed further. The EU is pressing for a reduction in the proposed 30% baseline tariff on most EU goods to a more manageable 15% [1].

The EU's request comes amidst ongoing negotiations between the United States and the European Union, with a potential deal on the table that could include a 15% tariff on most EU goods. Key US officials, including Commerce Secretary Lutnick and US Trade Representative Jamieson Greer, traveled to Scotland over the weekend to discuss the matter with EU Trade Commissioner Maros Sefcovic [2].

The Aug. 1 deadline is also significant for other trade partners, particularly India, which remains locked in intense negotiations with the US. The much-anticipated India-US trade pact is still pending finalization, with just days left before the tariff hammer drops. With global trade dynamics on edge, all eyes are on the EU and India to secure favorable terms before the deadline [2].

Meanwhile, the US and China are engaged in talks aimed at extending the current tariff truce by 90 days. The talks, taking place in Stockholm, are part of broader efforts to resolve longstanding economic disputes and facilitate a potential meeting between President Donald Trump and Chinese President Xi Jinping later this year [3].

The EU's urgency underscores the potential economic impact of the Aug. 1 tariffs. If implemented, these tariffs could disrupt global supply chains and have significant repercussions for trade and investment. The EU, which is one of America's largest sources of trade, is pushing for a swift resolution to avoid these disruptions.

As the deadline approaches, investors and financial professionals are closely monitoring these developments. The outcome of the negotiations could have substantial implications for global trade and economic stability. The EU's call for swift tariff reduction reflects a broader concern about the potential economic fallout of the Aug. 1 tariffs.

References:
[1] https://nypost.com/2025/07/27/us-news/trumps-aug-1-tariff-deadline-is-set-in-stone-lutnik-says/
[2] https://daijiworld.com/news/newsDisplay?newsID=1287544
[3] https://www.reuters.com/world/china/us-china-hold-new-talks-tariff-truce-easing-path-trump-xi-meeting-2025-07-28/