(Yahoo! Finance) - President Trump set a new rhetorical floor for tariffs on Wednesday night in comments that have been backed up by recent deals.
Taken together, the moves suggest that his administration is aiming to make 15% a new minimum rate for tariffs worldwide.
That is an increase from current 10% duties in place on much of the world and comes after months of trade negotiations saw American trading partners searching for ways to lower rates to little apparent avail.
Trump's comments Wednesday night came at an AI summit and included a touting of a recent deal with Japan that saw tariffs on a variety of products move to 15%.
"We're going to have a very, very simple tariff for some of the countries," the president then added of other talks, saying, "We'll have a straight simple tariff of anywhere between 15% and 50%."
He added that only a "couple" of countries could see the 50% rate because of larger disagreements — an apparent reference to Brazil — and that others could see the lower rate if they open up their markets to American goods.
Indeed, that 15% number has popped up again and again in recent days, from Japan to talks with the European Union, which — the Financial Times reports — is trying to close a deal around a 15% tariff.
"We've offered such a deal to the European Union where we're in serious negotiations," Trump added Wednesday, "and if they agree to open up to American businesses, then we will let them pay a lower tariff."
The focus on 15% is a shift — even from recent days.
Trump earlier this month said that many countries would see a rate of “probably 10% or 15%, we haven’t decided yet.” Even last Sunday, Commerce Secretary Howard Lutnick told CBS, "You should assume that the small countries ... will have a baseline tariff of 10%."
This new standard, if Trump follows through, would be a notable fulfillment of an oft-made campaign trail promise that saw the then-candidate pledge to create a "ring around the collar" of the US economy with a blanket rate of between 10% and 20%.
Fulfilling that pledge — which was often dismissed as unrealistic at the time — has now become not only accepted but even a plus for markets after six months of Trump's second term have seen threats of higher duties that have reordered world trade actions.
The recent announcement of the deal with Japan with a 15% tariff on goods like autos was welcomed by traders and helped fuel rises in US markets as well as the Japanese Nikkei 225, which immediately surged on the news.
Japanese automakers also saw a jump after the deal as those companies celebrated a deal that would lower auto tariffs there from 25% to 15%.
Yet Trump and his team reiterated that 15% is their floor and many countries and sectors will face higher duties.
Trump has shown no signs of amending his 50% tariffs on steel and aluminum (or planned duties at the same rate on copper). He has also promised sectoral tariffs on areas like semiconductors and pharmaceuticals that could be much higher than 15%.
He is also looking to move forward with higher duties on certain countries that cross him.
Brazil, as one example, is facing 50% tariffs largely over Trump's claims that it is treating a former president and Trump ally badly.
Trump reiterated Wednesday that 50% duties in some select instances are likely to go forward on Aug. 1, with Brazilian officials also suggesting hopes for a negotiated deal in the short term are diminishing.
Other recent deals — with Vietnam, the Philippines, and Indonesia — have also seen higher tariff rates of between 19% and 20%.
Only one country negotiation has seen Trump agree on tariff rates below 15% — a pact with the UK in May — but with the odds of similar agreements apparently dwindling.
"The U.K. Trade Team smartly secured an early deal," Treasury Secretary Scott Bessent wrote earlier this month, adding "usually the first person who makes a deal makes the best deal."
The back and forth with global trading partners also comes as much of the focus from the markets is on talks with China that are set to continue next week in Sweden.
The blanket rate on China for the moment is 30%, with much of the focus — even as Bessent says the negotiations will look to tackle "bigger issues" — on whether a new pause can avert higher tariffs there.
By Ben Werschkul - Washington Correspondent
