Hassett Signals Potential Tariff Reductions to 10% or Below for Select Countries

U.S. may lower tariffs to 10% or less for certain nations, per NEC director Kevin Hassett.
Recent reciprocal deal with China cut tariffs from 125% to 10% on specific goods.
Mixed trade approach continues as EU faces rate hikes while negotiations expand globally.

Shifting Tariff Landscape

National Economic Council director Kevin Hassett indicated this week that the U.S. could reduce tariffs to 10% or below for some trading partners, marking a potential softening in trade policy even as selective escalations continue. The comments follow a May 14 agreement that slashed the U.S. tariff rate on certain Chinese materials from 125% to 10%—a move matched by Beijing's reciprocal reductions on American goods.

Yet the administration maintains pressure elsewhere. Fresh EU tariffs implemented May 23 added 4-5 percentage points to rates, a move analysts at Goldman Sachs estimate could shave 0.2 percentage points off 2025 GDP growth. "We're seeing both carrots and sticks," said one trade advisor familiar with the discussions, speaking on condition of anonymity. "The China de-escalation shows flexibility, but the EU adjustments prove the hardline stance isn't disappearing."

Negotiations Accelerate

Hassett revealed in April that over 50 countries have initiated tariff talks with Washington, suggesting more adjustments may follow. Private sector economists remain divided on the net impact, with JPMorgan analysts warning of persistent consumer price pressures even as manufacturing groups applaud the China détente.

Attempts to reach Treasury officials for comment on specific negotiation timelines were unsuccessful. A White House spokesperson reiterated that "all rates remain dynamic based on reciprocal outcomes"—a nod to the administration's trademark transactional approach. With derivative product tariffs still climbing to 25% since March, businesses face a complex web of costs. "You're essentially playing multidimensional chess," remarked the head of a multinational's trade desk, who asked not to be named discussing sensitive pricing strategies.