Lutnick Interview on CBS
On Extension of Tariff Suspension: "August 1 Is a Hard Deadline"
Korea Also Mobilizes All Efforts for Last-Minute Tariff Negotiations
On July 20 (local time), U.S. Secretary of Commerce Howard Lutnick dismissed the possibility of another extension of the mutual tariff suspension, stating that, as previously announced, the United States will impose high tariffs on countries with large economies starting August 1. However, he left open the possibility for countries that have not reached a trade agreement with the United States by that date to continue negotiations while bearing the tariffs.
In response, the Korean government is urgently dispatching its economic, trade, and diplomatic teams to the United States to begin last-minute negotiations ahead of the tariff deadline, which is now just ten days away.
Appearing on CBS’s “Face the Nation” that day, Secretary Lutnick ruled out the possibility of extending the tariff suspension beyond August 1, stating, “No, it is a hard deadline.”
He continued, “New tariff rates will apply starting August 1,” but added, “However, that does not prevent them from continuing to talk with us afterwards.”
Previously, President Donald Trump sent tariff letters to Korea (25%), Japan (25%), and the European Union (EU, 30%), notifying them of the country-specific mutual tariffs that will take effect after August 1. The United States initially implemented mutual tariffs in early April, then suspended them until July 8, and subsequently extended the suspension by about three weeks. Secretary Lutnick’s remarks are interpreted to mean that, even if mutual tariffs go into effect next month, the United States will continue negotiations with countries that have not yet reached a trade agreement.
Secretary Lutnick emphasized, “The basic tariff of 10% will definitely remain,” and added, “Many countries will be subject to even higher tariff rates.”
The United States applies a basic tariff of 10% to all countries and imposes additional mutual tariffs based on each country’s level of trade barriers. He stated that no country can be completely exempted from tariffs through negotiations.
Secretary Lutnick explained, “Relatively small countries, such as those in Latin America and the Caribbean, and many African nations, will be subject to the basic 10% tariff.” In contrast, he warned, “Countries with larger economies will either open their markets themselves or pay fair tariffs to the United States.”
He continued, “If there is a willingness to open markets and economies to U.S. companies, ranchers, fishermen, and farmers, better deals can be made. But if you suppress the United States with tariff barriers, President Trump believes it is fair to pay tariffs to trade with the world’s largest consumer, the United States.”
With the U.S. tariff suspension set to expire on August 1, the Korean government is also dispatching high-level officials to the United States in succession to focus all efforts on tariff negotiations. Wi Sunglak, Director of National Security at the Presidential Office, visited the United States for four days starting July 9 and departed again for the U.S. on July 20. While in the U.S., Director Wi is expected to meet with Marco Rubio, U.S. National Security Advisor and Secretary of State, to discuss the conclusion of a “package deal” covering trade and increased defense spending. In addition, newly appointed Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol and Minister of Trade, Industry and Energy Kim Jungkwan are also planning to visit the United States this week. The two countries are expected to reactivate the “2+2 High-Level Dialogue,” involving their finance and trade ministers, to enter into concrete negotiations.
Meanwhile, regarding negotiations with the EU, Secretary Lutnick stated that he spoke with the EU side that day and said, “There is a lot of room for agreement,” adding, “I am confident that we will reach a deal.”
According to a public opinion poll released by CBS that day, 60% of Americans oppose President Trump’s tariff policy. In response, Secretary Lutnick dismissed the poll, saying, “They will like the deals President Trump and I are pursuing.” Regarding concerns about rising prices due to the tariff policy, he claimed, “Inflation will remain at current levels.”
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