U.S. still looking at 10% baseline tariff, not higher, Lutnick says

The U.S. still intends to put a baseline tariff of 10% on many smaller countries, despite recent suggestions it could go higher, Commerce Secretary Howard Lutnick said Sunday. Why it matters: It's a small sign of relief for the market, which has watched nervously as President Trump repeatedly suggested in recent days that baseline rates could go to 15% or even 20%. Catch up quick: Earlier this month, Trump sent letters to dozens of countries, unilaterally setting tariff rates as of August 1. Hundreds more are expected in the coming days.So far, only one of those countries, Indonesia, has made a nominal deal for a better rate than the letter imposed, though it's not clear if that arrangement is anywhere close to finalized. The Yale Budget Lab estimates that Americans — including the impact of the August 1 letters — now face the highest tariff rate since 1910, an average cost of $2,800 per household this year. What they're saying: "You should assume that the small countries, the Latin American countries, the Caribbean countries, many countries in Africa, they will have a baseline tariff of 10%," Lutnick said on CBS's "Face the Nation" Sunday."The bigger economies will either open themselves up or they'll pay a fair tariff to America," he said.Zoom out: Lutnick said August 1 was a hard deadline, and that no nation was going to "negotiate away" tariffs entirely."10% is definitely going to stay. Many countries will pay higher," he said.The intrigue: CBS released a new poll Sunday morning showing 60% of respondents oppose tariffs, and 61% believe the administration is putting too much emphasis on tariffs.Lutnick dismissed the finding."They're going to love the deals that President Trump and I are doing. They're just going to love them," he said.He also dismissed any concerns about tariffs causing prices to rise. "I think you're going to see inflation stay right where it is," he said. The recent CPI report showed inflation has been creeping steadily higher in recent months, including in the goods categories most exposed to tariffs.What to watch: With 12 days to go until the deadline, a number of countries and blocs, like Japan, South Korea, and the European Union, are actively negotiating with U.S. officials to lock in lower rates.

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