On Friday, May 9, US President Trump stated that regardless of whether trade agreements are reached with trading partners, a 10% baseline tariff will be retained. He mentioned that some countries may be exempted if they provide significant trade conditions. In regards to tariffs on China, Trump also mentioned the existence of a minimum tax rate but did not disclose the specific value.
Trump mentioned at the White House on Friday that a new trade agreement is expected to be reached in the coming weeks, but “our baseline tariff rate remains at 10%.”
“There may be exceptions, someday we might see someone doing something special for us, that’s always a possibility. But fundamentally, the lowest tariff is 10%, some could be much higher, like 40%, 50%, 60%, just like what they have done to us over the years,” he continued.
On Thursday, a groundbreaking trade agreement was reached between the US and the UK, but the 10% baseline tariff on UK goods still remains. US government officials insist on imposing a 10% tariff on all imported goods to help address the trade deficit issue and promote domestic manufacturing.
“The President is determined to continue maintaining the 10% baseline tariff,” White House spokesperson Karoline Leavitt mentioned earlier on Friday. She stated, “I just spoke with him about it.”
As the US prepares for trade negotiations with Beijing, Trump stated on Friday that he has informed Treasury Secretary Scott Bessent about the minimum tariff rate that can be adjusted.
“We must secure a great deal for America,” Trump said.
When asked by reporters if he would be disappointed if Bessent does not reach an agreement and returns, Trump responded, “No, not at all, because we have already secured a great deal. We are not doing business with China now.”
Currently, the US imposes tariffs of over 145% on most Chinese goods, with some products facing tariffs as high as 245%; while the CCP levies a 125% tariff on most US goods. Trump’s intent is to decouple US-China trade under these circumstances.
Earlier on Friday, Trump posted on the social media platform “Truth Social” that reducing tariffs from 145% to 80% may be appropriate.
In an interview later in the afternoon, he confirmed the tariff levels on Chinese goods would not drop below a certain level but refused to reveal whether it would be specifically 80% or lower.
“We’ll see how the final results turn out,” Trump remarked.
White House spokesperson Karoline Leavitt clarified to the media during a press briefing on Friday afternoon regarding the 80% tariff, stating it was just a figure proposed by the President and would depend on the outcome of the US-China talks over the weekend.
“The President still stands by his position of not unilaterally reducing tariffs on China. We also need to see concessions from them (Beijing). This is part of the reason Treasury Secretary Bessent will be meeting with his Chinese counterpart this weekend,” Leavitt said.
“As for the 80% figure, that’s just a number put forward by the President. We will always strive to be transparent and see what unfolds this weekend. I believe you will hear directly from the Treasury Secretary or the President after the negotiations conclude,” Leavitt added.
Treasury Secretary Bessent and US trade negotiation representative Jamieson Greer met with senior Chinese economic diplomat He Lifeng in Switzerland on Saturday to start the first round of trade discussions. It’s reported that China’s Minister of Public Security Wang Xiaohong also participated in the negotiations.
The tariffs above 100% in both directions are not the only tension points in the US-China talks over the weekend. Non-trade issues such as fentanyl, technology restrictions, and geopolitical issues including the Ukraine conflict may further complicate the resolution of the US-China trade conflicts.
Scott Kennedy, a China business expert at the Center for Strategic and International Studies, told Reuters, “They won’t solve any problems this weekend, other than trying to determine whether to launch negotiations and the agenda.”
Most economies globally rely heavily on cheap Chinese products on the supply side and affluent US consumers on the demand side, creating an imbalanced global trade environment that won’t be resolved in the short term.
According to Reuters, Lynn Song, Chief Greater China Economist at ING, predicts that any tariff reduction would bring tariffs down to around 60%, consistent with Trump’s pre-election promises.
She stated, “This level is still high enough to allow many products with proper substitutes to enter the US, but it also permits importers to purchase products without alternatives with less pain.”