President Donald Trump has said he might make some exceptions to his new 10% tariff plan, which applies to most countries trading with the US. However, he also made it clear that 10% is the minimum rate for any future trade deals.
“There might be a few exceptions for obvious reasons,” Trump said while speaking to reporters on Air Force One. He didn’t explain what those exceptions might be or change his main stance on tariffs.
This announcement came at the end of a week full of ups and downs for the stock and bond markets. Earlier in the week, Trump had announced new higher tariffs on many countries. But after the markets reacted negatively, he decided to delay some of those tariffs. Investors were concerned the tariffs might hurt the global economy.
Trump’s new plan includes a very high tariff of 145% on Chinese goods, while most other countries will face the 10% tariff. Countries are now rushing to negotiate better deals with the US to avoid these high costs.
Despite the chaos, Friday ended on a positive note for the markets. The S&P 500 rose by 1.8%, its best week since 2023, after a Federal Reserve official said the central bank is ready to step in and stabilize the market if needed.
However, experts warn that Trump’s aggressive tariff policy, aimed at bringing jobs back to the US and increasing government income, could cause a recession and hurt the US economy’s strong global reputation.
Trump dismissed these concerns, saying the economy is strong and the US dollar will always be the top global currency. He also downplayed the recent swings in the bond market, saying, “It had a little moment, but I solved that problem very quickly.”
Still, the new 10% tariff rate and especially the much higher rate on China could push US tariffs to historic levels, according to Bloomberg Economics. The US-China trade war now affects about $690 billion in goods.
In response, China raised tariffs on all US goods to 125%, matching the US move and adding to an earlier 20% tax. China said it won’t raise tariffs further for now but promised to respond with other actions.
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Despite the ongoing tension, Trump said he believes something positive could come from the situation and praised Chinese President Xi Jinping as a “very smart leader.”
