Lutnick Says Trump’s Tariffs Will Take Effect on Aug. 1
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
Trump’s tariffs to kick in August 1, says US Commerce Secretary Lutnick
Commerce Secretary Howard Lutnick has confirmed that the new round of tariffs proposed by President Donald Trump will officially come into effect on August 1. In April, Trump announced sweeping trade measures, including a 10% base tariff on imports from most countries and additional tariffs of up to 50% on targeted goods.
In April, Trump announced sweeping trade measures, including a 10% base tariff on imports from most countries and additional tariffs of up to 50% on targeted goods. Originally scheduled for a broader rollout in July, Trump later delayed implementation for all but the 10% base rate until July 9. Lutnick’s comments now suggest that full implementation is being pushed to August, granting businesses and trading partners a three-week extension to prepare.
The delay may offer temporary relief to companies bracing for price hikes and supply chain disruption.
US President Donald Trump on Sunday confirmed that letters related to upcoming trade deals with multiple countries, including India, will begin rolling out from Monday.
“We are going to be sending letters out on Monday having to do with the trade deals… It could be as many as 15 or so,” Trump told reporters. He added that while some letters will be sent early in the week, others will follow on Tuesday and Wednesday. “We have made deals also,” he noted.
Trump says US nears multiple trade deals, tariffs to take effect on August 1
The United States is close to finalising several trade agreements, US President Donald Trump says. He will notify other countries of higher tariff rates by July 9, with the higher rates scheduled to take effect on August 1. The new date offers countries a three-week reprieve. Trump in April announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% until July 9. Since taking office, Trump has set off a global trade war that has roiled financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries. The White House Council of Economic Advisers’ Stephen Miran says countries need to make concessions to get lower tariff rates, but there might be wiggle room for countries engaged in earnest negotiations. The European Union has made good progress in its talks, Treasury Secretary Scott Bessent says.
Trump and other top officials had flagged the August 1 date earlier, but it was unclear if all tariffs would increase then.
advertisement
Read More
Asked to clarify, Commerce Secretary Howard Lutnick told reporters the higher tariffs would take effect on August 1, but Trump was “setting the rates and the deals right now.”
Trump in April announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% until July 9. The new date offers countries a three-week reprieve.
US Treasury Secretary Scott Bessent told CNN’s “State of the Union” earlier on Sunday that several big announcements of trade agreements could come in the next days, noting the European Union had made good progress in its talks.
He said Trump would also send out letters to 100 smaller countries with whom the US doesn’t have much trade, notifying them that they would face higher tariff rates first set on April 2 and then suspended until July 9.
advertisement
“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” Bessent told CNN.
Since taking office, Trump has set off a global trade war that has roiled financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.
Kevin Hassett, who heads the White House National Economic Council, told CBS’s “Face the Nation” program there might be wiggle room for countries engaged in earnest negotiations.
“There are deadlines, and there are things that are close, and so maybe things will push back past the deadline,” Hassett said, adding that Trump would decide if that could happen.
Stephen Miran, chairman of the White House Council of Economic Advisers, told ABC News’ “This Week” program that countries needed to make concessions to get lower tariff rates.
“I hear good things about the talks with Europe. I hear good things about the talks with India,” Miran said. “And so I would expect that a number of countries that are in the process of making those concessions… might see their date rolled.”
advertisement
Bessent told CNN the Trump administration was focused on 18 important trading partners that account for 95% of the US trade deficit. But he said there had been “a lot of foot-dragging” amongst countries in finalising trade deals.
Trump has repeatedly said India is close to signing a deal and expressed hope that an agreement could be reached with the European Union, while casting doubt on a deal with Japan.
Thailand, keen to avert a 36% tariff, is now offering greater market access for US farm and industrial goods and more purchases of US energy and Boeing BA.N jets, Finance Minister Pichai Chunhavajira told Bloomberg News on Sunday.
India and the United States are likely to make a final decision on a mini trade deal in the next 24 to 48 hours, local Indian news channel CNBC-TV18 reported on Sunday, with average tariffs on Indian goods shipped to the US to be 10%, it said.
Hassett told CBS News that framework agreements already reached with Britain and Vietnam offered guidelines for other countries seeking trade deals. He said Trump’s pressure was prompting countries to move production to the United States.
advertisement
Miran called the Vietnam deal “fantastic.”
“It’s extremely one-sided. We get to apply a significant tariff to Vietnamese exports. They’re opening their markets to ours, applying zero tariff to our exports.”
– Ends
Published By: Satyam Singh Published On: Jul 7, 2025
Tune In
Trump and US commerce secretary say tariffs are delayed until 1 August
Donald Trump says he will send letters to US trade partners on Monday dictating new tariff rates to be imposed on goods they sell to Americans. The president was asked if the new rates would go into effect this week, or on 1 August, as some officials had suggested. Trump in April had announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% until 9 July. The new date of 1 August offers countries a further three-week reprieve, but also plunges importers into an extended period of uncertainty.
With his previously announced 90-day pause on tariffs set to end on 9 July, the president was asked if the new rates would go into effect this week, or on 1 August, as some officials had suggested.
“No, they’re going to be tariffs, the tariffs, the tariffs are going to be, the tariffs,” the president began, uncertainly, “I think we’ll have most countries done by July 9, yeah. Either a letter or a deal.”
Sensing the confusion, his commerce secretary, Howard Lutnick jumped in to add: “But they go into effect on August 1. Tariffs go into effect August 1, but the president is setting the rates and the deals right now.”
Trump in April had announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% until 9 July. The new date of 1 August offers countries a further three-week reprieve, but also plunges importers into an extended period of uncertainty.
Scott Bessent, the US treasury secretary, told CNN’s earlier on Sunday that several big announcements of trade agreements could come in the next days, noting the European Union had made good progress in its talks.
He said Trump would also send out letters to 100 smaller countries with whom the US doesn’t have much trade, notifying them that they would face higher tariff rates first set on 2 April and then suspended until 9 July.
“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” Bessent told CNN.
Since taking office, Trump has set off a global trade war that has roiled financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.
Kevin Hassett, who heads the White House National Economic Council, told CBS that there might be wiggle room for countries engaged in earnest negotiations. “There are deadlines, and there are things that are close, and so maybe things will push back past the deadline,” Hassett said, adding that Trump would decide if that could happen.
Trump’s Tariffs Will Take Effect on August 1: Lutnick Says
US President Donald Trump confirmed that tariffs are set to go into effect on August 1, not July 9. Trump’s initial 90-day reprieve on the April “reciprocal” tariffs for most US trading partners was set to end Tuesday.
Trump and Commerce Secretary Howard Lutnick, in an interview with reporters on Sunday, were asked to clarify when the tariffs are scheduled to take effect. “Tariffs go into effect August 1,” Lutnick said in response.
Earlier, Treasury Secretary Scott Bessent, in an interview with CNN, said that tariffs will revert to April 2 levels on August 1 if no progress is made on signing a deal with the U.S. Trump’s initial 90-day reprieve on the April “reciprocal” tariffs for most US trading partners was set to end Tuesday.
Meanwhile, the deadline for the U.S. to reach an agreement with the European Union—before EU goods are hit with duties of up to 50%—was set for Wednesday.
Stock futures fall after Trump team says tariffs will go into effect on Aug. 1: Live updates
Dow Jones Industrial Average futures slid by 146 points, or 0.32%. S&P 500 futures and Nasdaq 100 futures dipped 0.39% and 0.42%, respectively. Trump’s initial 90-day reprieve on the April “reciprocal” tariffs for most U.S. trading partners was set to end Tuesday. Treasury Secretary Scott Bessent said tariffs will return to April 2 levels on Aug. 1 if there is no progress on signing a deal with the U.K. The White House did not immediately reply to a question about whether the president planned to issue a new executive order before July 9.
Dow Jones Industrial Average futures slid by 146 points, or 0.32%. S&P 500 futures and Nasdaq 100 futures dipped 0.39% and 0.42%, respectively.
In an interview with reporters Sunday, Trump and Commerce Secretary Howard Lutnick were asked to clarify when tariffs are set to go into effect. In response, Lutnick said, “Tariffs go into effect Aug. 1. But the president is setting the rates, and the deals, right now.” Trump nodded in approval.
Earlier in the day, Treasury Secretary Scott Bessent said in an interview on CNN’s “State of the Union” that tariffs will return to April 2 levels on Aug. 1 if there is no progress on signing a deal with the U.S.
Investors had been expecting tariff rates to go into effect this week. Trump’s initial 90-day reprieve on the April “reciprocal” tariffs for most U.S. trading partners was set to end Tuesday.
As of Sunday, Trump’s April 9 executive order which established the July 9 tariff implementation date did not appear to have been formally revised. While the president has broad tariff powers, the April 9 order would typically be replaced with a new order establishing the Aug. 1 date.
The White House did not immediately reply to a question from CNBC about whether the president planned to issue a new executive order before July 9.
Wall Street is coming off a winning week, with the S&P 500 and Nasdaq Composite closing at all-time highs Friday in part because of confidence the Trump administration will not implement the most severe tariffs it announced back in April. In recent days, the White House had called the July trade deadlines “not critical.”
“Ultimately, trade negotiations usually take a long time to negotiate; free trade arrangements the US negotiated have taken an average of 3 years,” Rajeev Sibal, senior global economist at Morgan Stanley, wrote last week. “While the negotiations that are currently taking place are likely to be narrower than a full fledged free trade agreement, the historical precedent remains informative.”
Investors worry that an equity market at all-time highs could become more volatile as trade updates emerge from the White House, especially if the negotiations result in higher tariffs than expected. But others remain confident the stock market rally can continue, betting that companies in the upcoming earnings season will be able to clear low expectations if they demonstrate the ability to navigate tariffs.
“I agree with anybody who says that, ‘Look, we’ve reshaped some of the economic flows around tariffs,’ but that’s an upside story because if it plays out better, that’s an earnings surprise,” Tom Lee, head of research at Fundstrat Global Advisors, told CNBC’s “Closing Bell” on Thursday. He added: “This is the most hated V-shaped rally.”
— CNBC’s Erin Doherty contributed to this report.