On Sunday, Commerce Secretary Howard Lutnick indicated that the 10% baseline tariff on imports is set to remain in effect for the foreseeable future, a sentiment that aligns with remarks made by President Donald Trump earlier in the week.
During an interview on CNN’s ‘State of the Union,’ Lutnick affirmed, “We do expect a 10% baseline tariff to be in place for the foreseeable future.”
He dismissed concerns that consumers would bear the brunt of increased prices stemming from these tariffs, asserting that both businesses and foreign countries will shoulder the financial burden instead.
However, evidence suggests that many businesses are already attempting to pass on the costs to consumers, as consumer confidence has significantly dropped following Trump’s tariff announcement on April 2. Prices on various household goods have also seen an uptick.
“Businesses, their job is to try to sell to the American consumer, and domestically produced products are not going to have that tariff, so the foreigners are going to finally have to compete,” Lutnick stated.
Lutnick’s remarks followed President Trump’s declaration from the White House that the 10% tariff would serve as the minimum for future trade agreements, and that rates could be “much higher” for certain countries.
Despite a recent trade agreement between the United States and the United Kingdom, the 10% baseline tariff remains applicable to most imports entering the U.S.
Trump characterized the 10% rate for products from the U.K. as a “low number,” praising the favorable deal made by the United Kingdom.
He added, “Some will be much higher because they have massive trade surpluses.”
