U.S. tariffs are set to remain at a minimum of 10% for the “foreseeable future,” according to Commerce Secretary Howard Lutnick on Sunday.
Last month, President Trump imposed this rate on nearly all countries, and since then, his administration has been negotiating swift trade agreements internationally.
“We’re not going below 10%,” Lutnick stated during an appearance on CNN’s “The State of the Union.”
He added, “We address specific issues on a country-by-country basis. We’re flexible and becoming smarter in our approach across nations.”
Trump has previously indicated that a baseline of 10% is effective, while still allowing some leeway.
“There will always be a baseline,” Trump told reporters at the White House on Friday. “There could be exceptions if a country does something special for us—it’s always possible.”
The Trump administration recently revealed its first new trade agreement since the implementation of tariffs during what the president called a “liberation day.” Under this accord, the U.S. will maintain a baseline tariff of 10%, but will exempt 100,000 British-made cars annually from a 25% automobile tariff. In return, the UK will lower U.S. ethanol fuel tariffs from 19% to zero.
The U.S. is also removing tariffs on British-made aircraft components like Rolls Royce engines. In contrast, the UK is imposing 25% tariffs on U.S. steel and aluminum imports.
Additionally, Trump’s administration is pursuing a “complete reset” in trade relations with China, as the president stated. Key officials, including U.S. Treasury Secretary Scott Bescent, U.S. Trade Representative Jamie Songlia, and China’s Deputy Prime Minister, convened in Switzerland over the weekend to address ongoing trade disputes.
“This is vital for the U.S. China is really important,” Lutnick commented on the discussions. “Let the team handle it. They’re working hard, and everyone is hopeful on both sides.”
He mentioned a sense of optimism regarding potential outcomes, although he refrained from going into details.
Lutnick also insisted that tariffs weren’t driving up consumer prices. “Ignore the misguided arguments that American consumers are bearing the cost,” he said, countering many economists who argue that tariffs ultimately affect consumers.
“It’s the companies’ job to sell to American consumers. Products made here won’t carry those tariffs, so foreign products will need to compete,” a U.S. official explained.
Thus far, Trump has implemented the most extensive set of tariffs on foreign goods in a century, including approximately 145% tariffs on most imports from China.
He has also enforced 25% tariffs on cars, aluminum, and steel. Furthermore, a 25% tariff rate applies to imports from Canada and Mexico that do not comply with the US-Mexico-Canada agreement.
Trump has set a deadline of July 8th for new agreements, hinting at the possibility of additional tariffs, including a potential 100% rate for films produced outside the U.S.
