'Off we go': US Commerce Secretary Howard Lutnick says tariffs set for August 1 with no grace period

Commerce Secretary Howard Lutnick confirmed there will be no extensions to the looming tariff deadlines. “No extensions, no more grace periods. August 1, the tariffs are set. They’ll go into place. Customs will start collecting the money, and off we go,” Lutnick said on Fox News on July 27.

The statement marks a shift from the administration’s earlier pattern — frequently announcing tariffs only to delay, reduce, or reverse them. That inconsistency led markets to coin the term “TACO trade” — Trump always chickens out — which many credit for fueling the stock market's recent surge.

Lutnick made clear the White House is done backpedaling. While he noted negotiations could still happen post-deadline, he emphasized the tariffs would start regardless.

The new tariffs, targeting dozens of countries, are part of the administration’s broader effort to rewrite global trade terms it views as unfair to US industries. Some of the announced rates are higher than those threatened in April, while others are lower.

Lutnick dismissed inflation concerns, asserting that “very few products are actually going to move their price” as tariffs roll out. Despite recent price hikes in tariff-exposed goods, he projected the levies could generate $700 billion to $1 trillion annually — far above the current run rate of less than $30 billion per month.

The deadline is adding pressure on U.S. allies and trading partners to finalize deals. President Trump, currently in Scotland for talks with the EU, is still open to negotiations, Lutnick said — but on US terms. “They’re hoping they make a deal, and it’s up to President Trump, who’s the leader of this negotiating table. We set the table,” he added.

Meanwhile, administration officials are also set to meet with Chinese counterparts this week for another round of trade discussions, with negotiations involving Canada, Mexico, India, and South Korea still pending.