US President Donald Trump has raised the baseline tariff rate from the previous 10 to 15 per cent. The rate matches that agreed in a deal with Japan this week. It could also apply to the European Union if negotiators reach consensus before the 1 August deadline.
Mr Trump said on Wednesday that tariffs with US trading partners would range from 15 to 50 per cent.
“We’ll have a straight, simple tariff of anywhere between 15% and 50%,” the president said at an AI summit in Washington, DC. The move was widely reported.
The new baseline rate has emerged as the US and European Union are reportedly close to a deal. The EU had approved a possible retaliatory package covering US goods worth over €90bn if the agreement falls through.
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According to reports, the deal could see US tariffs on EU imports fall to 15 per cent. But still on the table is 30 per cent Mr Trump has threatened to introduce from 1 August. At the same time, The Guardian reported the agreement so far does not include any reduction or removal of the 50 per cent rate on EU steel imports. The bloc’s steel exporters have described the 50 per cent levy as “catastrophic” for the industry.
