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Lutnick downplays impact of tariff court ruling on US, EU talks

Published by Global Banking & Finance Review

Posted on June 1, 2025

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· Last updated: January 23, 2026

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By Ted Hesson WASHINGTON (Reuters) -U.S. Commerce Secretary Howard Lutnick downplayed the impact of legal uncertainty around U.S. tariffs on negotiations with the European Union during an interview

Lutnick Minimizes Legal Ruling's Effect on US-EU Tariff Talks

By Ted Hesson

WASHINGTON (Reuters) -U.S. Commerce Secretary Howard Lutnick downplayed the impact of legal uncertainty around U.S. tariffs on negotiations with the European Union during an interview with Fox News Sunday, saying talks were ongoing.

Lutnick was asked about a Reuters report quoting an unnamed EU official close to negotiations who said the legal uncertainty of the tariffs in the U.S. gave the E.U. "extra leverage."

"You can't listen to silly people making silly comments," Lutnick said. "All of the countries that are negotiating with us understand the power of Donald Trump and his ability to protect the American worker."

A U.S. trade court blocked most of President Donald Trump's tariffs in a sweeping ruling last week that found the president overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. A U.S. federal appeals court paused that ruling a day later, allowing the tariffs to go into effect while it considered an appeal by the Trump administration.

Lutnick said the ruling "maybe cost us a week, but then everybody came right back to the table."

Trump in late May threatened 50% tariffs on all European goods by June 1 but days later delayed the effective date to July 9 to allow for time to negotiate.

Trump also said on Friday that he would increase tariffs on imported steel and aluminum to 50% from 25%, leading the European Commission on Saturday to say it could consider countermeasures.

Speaking on ABC News' 'This Week,' White House economic adviser Kevin Hassett said the U.S. needed to protect its steel industry for national security reasons in light of economic rival China's steel production.

"We have to show strength," Hassett said. "We have to have a steel industry that's ready for American defense."

(Reporting by Ted Hesson in Washington; Additional reporting by Doina Chiacu; Editing by Caitlin Webber in Washington)

Key Takeaways

  • Lutnick downplays legal ruling's impact on US-EU talks.
  • US trade court blocked Trump's tariffs, but appeal paused ruling.
  • Trump threatens increased tariffs on European goods.
  • US aims to protect steel industry for national security.
  • EU considers countermeasures to US tariff threats.

Frequently Asked Questions

What did Lutnick say about the impact of the tariff ruling?
Lutnick stated that the ruling 'maybe cost us a week, but then everybody came right back to the table.' He downplayed the legal uncertainty's effect on negotiations.
How did Trump respond to the tariffs on European goods?
Trump threatened to impose 50% tariffs on all European goods but delayed the effective date to July 9 to allow for negotiations.
What was the reaction of the European Commission to Trump's tariff increase?
The European Commission indicated that it could consider countermeasures in response to Trump's decision to increase tariffs on imported steel and aluminum.
What reasons did Hassett give for protecting the steel industry?
Hassett emphasized the need to protect the U.S. steel industry for national security reasons, particularly in light of economic competition from China.
Who reported on the legal uncertainty affecting US-EU negotiations?
A Reuters report quoted an unnamed EU official who suggested that the legal uncertainty surrounding U.S. tariffs provided the EU with 'extra leverage' in negotiations.

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