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Trump Locks in 10% Tariff Baseline as Cornerstone of Trade Policy

Trump Locks in 10% Tariff Baseline as Cornerstone of Trade Policy

President Donald Trump’s administration has reaffirmed its commitment to a 10% baseline tariff on nearly all imports, signaling a new era in U.S. trade relations that prioritizes protectionism and bilateral negotiation.

The decision, confirmed by White House Press Secretary Karoline Leavitt, comes amid ongoing global trade uncertainty and mounting concerns from international trading partners and domestic businesses.

Speaking at a briefing on Friday, Leavitt stated, “The president is committed to the 10% baseline tariff — not just for the United Kingdom, but for his trade negotiations with all other countries as well.”

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When asked if the tariff was intended to be permanent, she replied, “The president is determined to continue with that 10% baseline tariff. I just spoke to him earlier.”

Since its introduction on April 2, the baseline tariff has become the anchor of Trump’s broader trade doctrine, layered atop a series of more aggressive measures targeting specific countries and industries. The administration has raised tariffs on Chinese imports to a staggering 145%, paused some country-specific tariffs for 90 days, and exempted certain electronics from duties, all while keeping the 10% general tariff intact.

This tariff stance has already shaped negotiations with key allies. On Thursday, Trump announced his first post-tariff trade deal with the United Kingdom. The agreement includes a cut in U.S. tariffs on British car exports from 27.5% to 10%, and the removal of tariffs on British steel. In return, the UK agreed to lower tariffs on American agricultural exports, including beef and ethanol. However, Leavitt made it clear that “the 10% baseline remains in place across the board.”

Trump’s approach to China has been notably more volatile. Despite asserting earlier in the week that he would not consider easing tariffs on Beijing, he appeared to soften that stance days later. In a Truth Social post, Trump hinted that the 145% tariff on Chinese goods “could come down substantially” and mentioned a possible reduction to “around 80%.” The contradiction has drawn scrutiny from observers trying to decipher the administration’s ultimate strategy.

Meanwhile, trade experts and economists are watching with unease. Trump’s tariffs, particularly the sweeping 10% levy, have disrupted global supply chains and triggered significant market reactions. Since the announcement in early April, investors have grappled with volatility, and businesses have expressed concern over long-term predictability in their international operations.

Negotiations with other nations are also underway, with Trump’s team seeking tailor-made agreements. However, the fixed 10% duty remains a sticking point, complicating talks for countries hoping to negotiate exemptions or favorable terms. According to sources close to ongoing discussions, multiple governments have raised objections to the uniform tariff, viewing it as a blunt instrument that disregards nuanced trade relationships.

The tariff policy underscores Trump’s broader message of economic nationalism. During his campaign and into his presidency, Trump has consistently argued that the U.S. has been treated unfairly in global trade and has vowed to use tariffs as leverage to reset these dynamics.

But critics warn that such a wide-reaching tariff risks isolating the U.S. economy and inviting retaliation. In 2018 and 2019, during Trump’s previous tariff battles, most notably with China, American farmers and manufacturers suffered losses amid tit-for-tat tariffs and disrupted trade flows.

The situation remains fluid. Trump has indicated that his administration is open to adjusting specific tariffs based on negotiations but insists the 10% rate serves as a necessary baseline for fairness.

“We’re done being taken advantage of,” he wrote in a recent Truth Social post. “The 10% tariff is about leveling the playing field.”

Against this backdrop, the 10% tariff has become the new norm, influencing the responses of global partners as businesses brace for cost adjustments. However, it is not clear whether the tariffs will ultimately deliver the desired economic gains or continue to deepen global trade tensions.

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