Trump hints at 'exceptions' to 10% baseline tariff, but keeps everyone guessing on 'obvious reasons'

President Donald Trump said he might allow a few exceptions to his new ten per cent tariff on most US trading partners, though he stressed that ten per cent would be the minimum for countries wanting to make trade deals, according to a report from Bloomberg.

“There could be a couple of exceptions for obvious reasons, but ten per cent is a floor,” Trump said to reporters on Air Force One on his way to Florida. He didn’t explain what the “obvious reasons” were and gave no sign of changing his overall trade policy.

Trump’s comments came after his U-turn on reciprocal tariffs with a 90-day pause on his tariffs. Earlier, he had announced higher tariffs on many countries, but quickly delayed them after market turmoil raised fears that the move could harm the global economy. These announcements led to huge volatility, with markets falling around the globe.

Amid an ongoing trade war, China still faces a much steeper tariff of one hundred and forty-five per cent, while most other countries are still looking at a ten per cent rate.

Many, including India, are now trying to reach trade deals with the US.

However, concerns remain that Trump’s tariff push — aimed at bringing back US manufacturing and increasing federal revenue — could lead to a global recession and hurt the US’s economic reputation.

Trump dismissed these concerns, saying, “I think the markets were solid today. People see we’re in great shape.” He also said the US dollar would always remain the world’s top currency. “If a country stopped using the dollar, one phone call would bring them back,” he added.

Trump also brushed off the recent bond market volatility, saying, “It had a little moment but I solved that problem very quickly.”

Still, the heavy tariffs on China will raise overall US duties to historically high levels. The ongoing trade conflict between the US and China now puts six hundred and ninety billion dollars in trade at risk.

In response to Trump’s actions in the ongoing war, China increased tariffs on all American goods to one hundred and twenty-five per cent, matching Washington’s move. China said it would not raise tariffs further for now but promised to “fight to the end” with more, unnamed measures.

When asked about the trade standoff with China, Trump said, “I think something positive is going to come,” and described Chinese President Xi Jinping as “a very good and smart leader.”