Trump Sets Tariff ‘Floor’ at 10% Amid Trade Negotiations 🤝

President Donald Trump clarified the U.S. position on reciprocal tariffs, setting a minimum level as trade talks continue. Here’s a breakdown of the key points:

Key Takeaways:

• 10% as the Floor: Trump stated that 10%, or something very close to it, is the ‘floor’ for reciprocal tariffs, excluding China.
• 90-Day Reprieve: After announcing plans for tariffs exceeding 10% on August 4th, a 90-day grace period was granted to countries other than China for negotiations.
• Ongoing Negotiations: The U.S. is currently engaged in tailored negotiations with various countries.
• Positive Outlook on China: Trump expressed optimism about reaching a positive outcome with China, noting his good relationship with President Xi Jinping.

Trump’s Remarks in Detail:

While en route to Florida, President Trump addressed the press, emphasizing that while some exceptions may exist, he wants to make it clear that 10% or something very close to it is the ‘floor’. He mentioned being in discussions with many countries and feeling very positive about the current situation.

This statement follows the initial announcement of tariffs starting at 10% on August 5th, with potentially higher tariffs for countries deemed ‘worst offenders’ from August 9th. The 90-day pause for countries outside of China allows for these customized trade talks.

Treasury Secretary Scott Bessent had previously indicated that the reciprocal tariff rates announced on August 2nd represented a ‘ceiling,’ while the 10% base rate was the ‘floor.’ 📈

Other Key Points from Trump’s Statements:

• U.S. Treasuries: Trump addressed concerns about U.S. Treasury bonds, stating he quickly resolved the issue and that the bond market is performing well.
• Dollar Value: He believes the dollar’s value will increase as people understand the actions being taken by the U.S. government.
• Iran: Regarding the talks between the U.S. and Iran in Oman on August 12th, Trump stated his desire for Iran to be a great and happy nation but insisted they cannot possess nuclear weapons.
• Health Check: Trump mentioned feeling in very good condition after his annual health check, also noting that he aced a cognitive test. 🧠

This latest statement provides further clarity on the U.S.’s stance as it navigates complex trade negotiations with various nations. 🤔