Howard Lutnick, the U.S. Secretary of Commerce, stated that the 10% baseline tariff will continue to be maintained and argued that this cost will not be passed on to American consumers. Lutnick mentioned this during his appearance on CNN’s “State of the Union” on the 11th (local time), while also noting that “various issues will be addressed on a country-by-country basis.” For instance, steel, aluminum, and aircraft parts might be imported tariff-free.
Last week, the U.S. signed a trade agreement with the UK, eliminating the 25% tariffs previously imposed on British steel and aluminum and exempting tariffs on aircraft parts from Britain’s Rolls-Royce in exchange for purchasing Boeing aircraft. However, the 10% baseline tariff has been maintained, and Secretary Lutnick asserted that “the U.S. has no plans to lower this tariff rate below 10%.”
Lutnick dismissed claims that the tariffs would burden consumers as “nonsense,” explaining that “companies have to compete to sell to American consumers, and U.S.-made products are not subject to these tariffs,” adding that “it’s time for foreign companies to enter into genuine competition.”
However, most economists disagree with these claims. According to the University of Michigan’s Consumer Sentiment Index, American consumers’ inflation expectations recently hit a 40-year high, indicating that the burden from tariffs has already led to price increases.
President Trump announced on April 2 that a 10% baseline tariff would be imposed on countries worldwide. Although some countries have been subject to higher rates under the “reciprocity” principle, most have since been exempted.