On Wednesday’s “Bloomberg Surveillance,” Commerce Secretary Howard Lutnick stated that he doubts big countries “can get low” reciprocal tariff rates below 15% and it will be difficult for them to do so, but small nations “have a possibility” of getting low rates.
While discussing talks with Europe, co-host Annmarie Hordern asked, “Well, can they get below 15%, or is 15% now the floor…for a reciprocal tariff for the European Union?”
Lutnick responded, “I don’t think big countries can get low like that. I think small countries have a possibility of being low, and that’s up to the president to decide. But larger countries will have a hard time with that, they will have a hard time.”
Lutnick added, in response to a follow-up from Hordern on whether 15% is the floor for the E.U., by saying that he sets the table and organizes things, but, ultimately, President Donald Trump is the one who does the negotiating. Lutnick also stated that he believes that the European Union will open its economy up quite a bit.
He also stated that Japan bought a lower tariff rate because it was willing to give money to the U.S. for investment, which he doesn’t think that Europe will do.
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