Context:

Commerce Secretary Howard Lutnick stated that the baseline global tariffs of 10% are expected to remain in place, asserting that countries and businesses will bear the costs rather than consumers. Despite this claim, economists and consumer sentiment surveys indicate a general disagreement, with many believing that consumers will ultimately face the financial burden. President Trump initially established these tariffs with the potential for higher reciprocal tariffs, though most of these higher levies were later suspended. The persistence of these tariffs comes amidst the highest consumer inflation expectations recorded in over four decades, according to a University of Michigan survey. During an interview on CNN, Lutnick avoided providing details on the ongoing trade negotiations with China taking place in Switzerland.

Dive Deeper:

• Commerce Secretary Howard Lutnick emphasized that the 10% baseline global tariffs will persist, suggesting that the financial burden will fall on countries and businesses instead of consumers, a view not widely shared by economists and consumer surveys.

• There is skepticism about Lutnick's claims, as economists and sentiment surveys indicate that consumers are likely to bear the costs of the tariffs, contradicting the official stance that consumers will not be financially impacted.

• The 10% global tariff was introduced by President Trump on April 2, with some countries initially facing higher reciprocal tariffs, though most of these higher levies were eventually suspended, leaving the baseline in place.

• Consumer inflation expectations have surged to the highest levels in over 40 years, according to the University of Michigan sentiment survey, highlighting growing concerns about the economic impact of the tariffs.

• During a CNN interview, Lutnick refrained from sharing specifics about the ongoing trade discussions with China, which are currently taking place in Switzerland, leaving many details about the negotiations undisclosed.