On April 2, 2025, then President Trump announced the imposition of a new 10% tariff on all sorts of imported goods. As a result, this decision prompted colorful debates concerning its implications for U.S. trade policy. The news came only days after the United States signed a new trade deal with the United Kingdom. At the time, Trump touted this deal as a great one.
Today, the U.S. has a new 10% baseline tariff on nearly all imports. This pending decision has a lot of people scared, consumers and businesses alike. Trump suggested that 25% is a low tariff rate, for sake of example calling it low on products from the United Kingdom.
Howard Lutnick, Secretary of Commerce for the United States, echoed Trump’s sentiments. Equally important, he candidly proclaimed that the 10% baseline tariff is probably here to stay. He inexplicitly acknowledged that tariffs should be much higher for other countries depending on their trade surpluses.
“We do expect a 10% baseline tariff to be in place for the foreseeable future.” – Howard Lutnick
The U.S. started collecting this new tariff just a few weeks after Trump made his announcement, and consumer horror stories have already begun to circulate. With recent data from The Conference Board indicating that consumer confidence has fallen to its lowest point since 2011, rising costs and worries about their own economic situation are contributing to this drop. Businesses have already started passing these new costs to consumers, adding a new layer of uncertainty to the economy.
Lutnick stressed the competitive forces involved. He illustrated the unique burdens that American businesses must deal with, given that foreign competitors are now subject to this new tariff.
“Businesses, their job is to try to sell to the American consumer, and domestically produced products are not going to have that tariff, so the foreigners are going to finally have to compete.” – Howard Lutnick
Trump highlighted the advantages of the recent trade agreement with the United Kingdom, asserting that it was beneficial for the U.S.
“They made a good deal. Some will be much higher because they have massive trade surpluses.” – Donald Trump
The 10% baseline tariff represents a dramatic turn in U.S. trade policy. This bold move directly upends well-entrenched global trade precedents. As businesses and consumers alike adjust to these new realities, the long-term effects on the economy are still unclear.