Trump says 10% is tariff floor or pretty close, there could be exceptions

U.S. President Donald Trump on Friday said that 10% is a tariff floor, or pretty close, and that there could be a couple of exceptions. He also told that he thought something positive would come out with China

“There could be a couple of exceptions for obvious reasons but I would say 10% is a floor,” Trump told reporters Friday evening aboard Air Force One en route to Florida. He didn’t elaborate on the “obvious reasons” or suggest any shift in his broader tariff policy.

His remarks capped a volatile week for equity and bond markets and added fresh uncertainty for nations, investors, and businesses already grappling with his evolving trade agenda. Earlier in the week, Trump announced sweeping new tariffs on several countries—only to delay them just hours later, after financial markets reacted sharply amid fears that his import taxes could hurt the global economy.

While China, the world’s second-largest economy, now faces a steep 145% levy, Trump is sticking to the 10% baseline rate for most other nations, as foreign governments scramble to negotiate favorable terms with the U.S.

On Friday, markets rallied. The S&P 500 climbed 1.8%, capping its best week since 2023, boosted by a report that a Federal Reserve official signaled readiness to step in and stabilize markets if necessary. Yields on U.S. 10-year Treasuries retreated from their highs, though they posted their largest weekly jump in over two decades.

Still, recent market volatility shows little sign of abating, with concerns growing that Trump’s tariff-driven push to revive U.S. manufacturing and boost federal revenue could trigger recessions and erode America’s status as a global safe haven.

Trump, however, downplayed those concerns on Friday. “I think the markets were solid today. I think people are seeing we’re in great shape,” he said. He also emphasized his confidence in the U.S. dollar, declaring it would “always” remain “the currency of choice.”

“If a nation said we’re not going to be on the dollar, I would tell you that within about one phone call they would be back on the dollar. You always have to keep the dollar,” he added.

He also dismissed recent Treasury market turbulence—something he had cited earlier in the week when adjusting his tariff timeline. “The bond market’s going good. It had a little moment but I solved that problem very quickly,” Trump said.

Even with temporary relief for some trading partners, the sharply higher tariff on China is set to push the average U.S. duty rate to historic highs, according to Bloomberg Economics. The prolonged trade conflict between the world’s two largest economies now threatens $690 billion in bilateral trade.

In a tit-for-tat move, China on Friday raised tariffs on all U.S. goods to 125%, matching the new U.S. rate and layering it on top of an existing 20% tax. While Beijing said it wouldn’t mirror any further increases, it vowed to “fight to the end” with other unspecified countermeasures.

“I think something positive is going to come,” Trump said Friday, when asked about the ongoing trade battle with China, describing President Xi Jinping as “a very good leader, a very smart leader.”

With inputs from Bloomberg