Commerce Secretary Howard Lutnick announced Sunday that there will be no more extensions on tariff deadlines, and tariffs will go into effect as scheduled on August 1. This marks a shift from the recent pattern where President Trump frequently announced tariffs only to delay, pause, or reverse them shortly after, a behavior that investors dubbed the “TACO trade” (Trump always chickens out). Lutnick emphasized that this time the tariffs will be enforced without grace periods.
While Lutnick confirmed the August 1 deadline is firm, he noted that negotiations could continue beyond that date, leaving open the possibility for deals. The new tariffs, which will impact dozens of countries, include rates some higher than initially proposed and later paused in April, while others are lower. Analysts estimate the overall tariff rate on imports will reach just over 20%, the highest level since 1911. Lutnick dismissed concerns that the tariffs would cause significant inflation, stating that few product prices are expected to rise. He also projected tariff revenue could reach between $700 billion and $1 trillion annually, far exceeding current collections of less than $30 billion a month. With major trade talks upcoming, including meetings with the EU and China, the next few days will be critical in determining the future of these tariffs.