President Trump is settling on a new baseline tariff rate as the US clinched a trade deal with Japan and made progress toward a similar deal with the European Union. Trump said reciprocal tariffs on US trading partners would range from 15% to 50%, with countries the administration views as difficult receiving the higher rate.

"We'll have a straight, simple tariff of anywhere between 15% and 50%," the president said at an AI summit in Washington, DC, on Wednesday. "We have 50 because we haven't been getting along with those countries too well."

Trump's April "Liberation Day" tariffs had set a baseline rate of 10% on all US trading partners.

The new baseline has taken shape as the US makes progress on deals that have settled around that number. The US and European Union are closing in on a pact, multiple reports said, even as EU members approved possible retaliatory package on over $100 billion worth of US goods.
The Financial Times reported that the deal would see US tariffs on EU imports dip to 15%, instead of the 30% Trump has threatened from Aug. 1.

Such a deal would be similar to one Trump announced with Japan on Tuesday, which includes a 15% tariff on imported goods, while the country will invest $550 billion into the US.
Earlier this week, Trump also said the US had also struck a trade deal with the Philippines, which will see the country's imports face a 19% tariff into the US. Trump said US exports will face no import tax in the Philippines as part of the deal.

The White House also unveiled new details of a confirmed trade agreement with Indonesia. Yahoo Finance's Ben Werschkul reported that a 19% tariff will apply to Indonesian goods, as well as a 40% rate on any “transhipped” goods. US officials said no tax would apply to "99%" of US imports.
The deal developments come as prospects for larger pacts with India and Canada remain in question. Trump has threatened 25% to 35% tariffs on those larger trade partners.