Lutnick defends 10% baseline tariffs, say they aren't increasing prices

Commerce Secretary Howard Lutnick this week went on offense over the 10% baseline tariffs the administration has imposed amid a 90-day pause on larger "reciprocal" tariffs, saying they have not contributed to price increases.

Trump on April 2 imposed his "Liberation Day" tariffs aimed at reducing trade deficits with other nations, though turmoil in the bond and stock markets prompted him to pause the most extreme duties in favor of the 10% baseline. He has since notched trade deals with China and the UK. In the meantime, virtually every nation faces a 10% import tariff.

“So, the way it actually runs through the markets is that the selling countries overseas, they eat most of it, the currency as they trade to us, eats the rest of it," Lutnick told Chris Cuomo on Thursday.

“And you had the president of Amazon on his earnings call saying that, basically, Amazon has seen no change in demand and no change in price,” he added. “So, the fact is, at 10 percent you’re not going to see it. Above 15 percent, I agree you’re going to see it, but China eats the above numbers."

Inflation reached an annualized rate of 2.3% in April, below analyst expectations.