President Donald Trump announced that he will establish a baseline tariff rate of 10% for imports from countries seeking trade agreements with the United States. At a press briefing on trade at the White House, Trump provided additional details on Secretary Mnuchin’s—and other—ongoing trade negotiations. In particular, he put the spotlight on negotiations with the United Kingdom.
In early April, President Trump created a stir by proclaiming a 10% tariff on nearly all countries around the globe. He asked that this rate be used as the starting point in upcoming contracts. In other words, for imports from the UK, Trump made it clear that the tariff would remain at the baseline rate. He is expecting rates to be much higher for other countries.
“Some will be much higher because they have massive trade surpluses and in many cases they didn’t treat us right.” – Trump
During his remarks, Trump expressed satisfaction with the UK’s approach to trade negotiations, stating, “That’s a low number, they made a good deal.” He emphasized the positive relationship between the United States and the UK, noting, “One thing with U.K. … they always treated us with great respect.”
Aside from taking credit for the US-UK trade agreement, Trump foreshadowed negotiations with China. He even stated his belief that the tariff rate on Chinese imports should stay at 80%. This happens as meaningful discussion on trade and other pernicious economic issues goes mute. He apparently plans to meet with Chinese representatives to talk through some of these things. This meeting is evidence of his sustained interest in the shifting international trade landscape.
When pressed if the UK deal would be used as a model for future agreements with other countries, Trump responded emphatically, “No, no.” He then made a notable pivot, saying that every country will be judged on its own record and history of trade practices.
In a broader context of his economic policies, Trump expressed support for increasing taxes on the wealthy but cautioned that the Republican Party should consider the implications of such decisions carefully.
On the UK side, negotiations are reportedly very active with China. The results will have far-reaching implications for both international trade relations and U.S. domestic economic policy in the months to come.
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