US President Donald Trump said that he would not lower his tariffs to less than 15% when he sets them for US trading partners. This is a signal that this floor has been raised.
The latest announcement adds a new layer to the chaotic administration’s trade war. It suggests a more aggressive imposition on countries who haven’t yet established a framework for trade with Washington.
On Wednesday, during an AI Summit in Washington, President Trump said: “We will have a simple and straight tariff anywhere between 15 to 50%.”
He said, “We have fifty because we don’t get along too well with these countries.”
The latest move in the President Trump’s campaign to increase tariffs on almost every US trading partner is this comment. It declares that the new base for tariffs will begin at 15%.
This is the latest sign that the president is looking for a more aggressive approach to applying these taxes to exports coming from the many countries who have not been able to reach a specific agreement with the administration.
These tariffs are constantly changing. In an earlier statement, the President had said that over 150 countries will receive a notice with a “probably 10% or 15% tariff, but we’re not sure yet”.
Howard Lutnick told CBS News Sunday that the baseline tariff for small countries would be 10%. This includes “the Latin American and Caribbean countries as well as many African countries.”
When the first tariff announcement was made in April, Trump announced a 10% tariff on almost every country. This new floor of 15% signals that his administration is becoming more aggressive.
Deals and deadlines. A door that is left open.
The President and his advisors initially expressed hope of multiple detailed trade agreements. However, his recent rhetoric has changed, referring to the tariff letters as “deals” themselves. He also suggests that he’s not interested in long, protracted negotiations.
He said that “you can’t make deals with everybody” on Wednesday. This is why he chose to opt for “very simple tariffs for certain countries.”
He has left open the possibility that countries could reach an agreement to lower their tariffs before August 1.
The deal with Japan announced on Tuesday is a prime example. The agreement announced by President Trump reduced a 25% threatened tariff against Japan to a 15%. The concession was made in exchange for Japan to remove restrictions on certain U.S. goods and offer to support a $550 billion fund.
South Korea, India and other major trading partners such as members of the European Union are also still working hard to reach their agreements prior to the scheduled date for the increased tariffs to take effect. On Wednesday, when speaking about ongoing talks with the European Union, President Trump called the discussions “serious.”
If they open the union up to American business, we’ll let them pay lower tariffs,” Trump said. He was indicating that there is still a way to get a better outcome for the bloc if it meets the demands of his administration.
The post Trump announces tariffs of 15% to 50% before August deadline could be updated as new developments unfold
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