Hassett: It would take an ‘extraordinary deal’ for Trump to drop rates below 10%
NEC director Kevin Hassett says the 10% universal baseline tariff rate is likely to stay in place for most countries as part of any negotiated trade deals.
“It is going to take some kind of extraordinary deal for the president to go below” that rate, Hassett said.
Hassett also said “closing in on 20” countries have offered the U.S. a trade deal. The 90-day timeline for hammering out these deals under the universal baselines is “very doable,” he added.
“We had two deals almost closed as of last week. Almost closed. Getting them closed requires the lawyers to work forever and so on, and so getting them closed by yesterday was not quite going to happen.”
— Jesse Pound
Kevin Hassett, director of the U.S. National Economic Council, said on “Squawk Box” that the volatility in the bond market was not a direct reason for the Trump tariff pause, but likely added “a little more urgency” to the decision.
“Everything was moving forward in an orderly fashion. There’s no doubt that the Treasury market yesterday made it so that the decision that, you know, it is about time to move was made with, I think, perhaps a little more urgency. But it was going to happen,” Hassett said.
The 10-year Treasury yield rose above 4.5% and the 30-year rate spiked above 5% overnight on Wednesday ahead of the pause, with bond prices tumbling.
Traders said Japan and China may be dumping U.S. government bonds and that the developments could be concerning to the White House administration, according to Reuters.
Long-term Treasury yields have moved lower since the tariff pause was announced, with the 10-year yield trading around 4.308% on Thursday morning.
— Jesse Pound
Chinese Foreign Ministry spokesperson Lin Jian attends a press conference in Beijing, China April 10, 2025.
Tingshu Wang | Reuters
China is not looking to fight a trade war, but will not flinch if tariff hostilities escalate to that point, Chinese Foreign Ministry Spokesperson Lin Jian told reporters on Thursday, according to Chinese news outlet Xinhua.
His comments came in response to Trump’s threat to impose further levies on imports from China.
Beijing and Washington have been engaging in the imposition of tariffs and retaliatory measures since the U.S. kicked off its protectionist trade regime under Trump’s second administration, triggering global fears of a trade war between the world’s two largest economies. China has also filed official complaints accusing the U.S. of breaching the rules of the World Trade Organization.
— Ruxandra Iordache
President of the European Commission Ursula von der Leyen and the Prime Minister of Norway (Unseen) talk to the media in the Berlaymont, the EU Commission headquarters on April 7, 2025 in Brussels, Belgium.
Thierry Monasse | Getty Images
The European Union will pause the adoption of its retaliatory trade countermeasures against a spate of U.S. goods for 90 days, European Commission President Ursula von der Leyen said following the White House reprieve on most of its own tariffs.
EU members had on Wednesday voted in favor of a package of retaliatory steps in response to U.S. tariffs on steel and aluminum.
“We want to give negotiations a chance,” von der Leyen said on social media. “If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table.”
The EU, a historically close transatlantic ally of the U.S., was further hit with 20% tariffs when Washington issued reciprocal duties on trade partners on April 2. The levy has been reduced to just 10% for 90 days following Trump’s Wednesday announcement.
— Ruxandra Iordache
U.S. tariffs on China imports could potentially knock off 0.5 percentage points off China’s GDP growth, Fred Neumann, chief Asia economist at HSBC, told CNBC’s “Squawk Box Europe.”
Neumann said China’s 5% GDP target is “certainly under pressure now,” assuming that U.S. tariffs on China imports remain in force. Lower GDP would require “quite a significant increase” in stimulus to offset that weaker expansion, he said, adding that China does have tools at its disposal to offset those risks.
The U.S. and China are “putting on a brave face at the moment and saying they’re not going to budge, but it is clear that for both sides, there’s plenty of disruption to come if these tariffs stay in place, and therefore one cannot rule out some negotiations behind the scenes,” Neumann said.
— April Roach
Stacked containers are seen at the container terminal ‘Eurogate’ in the harbour of the northern German city of Hamburg Port on February 27, 2025 in Hamburg, Germany.
Morris Macmatzen | Getty Images
U.S. tariffs on aluminum, steel and vehicle imports could reduce the gross domestic product growth of export-reliant Germany by 0.1 percentage points in each of 2025 and 2026, German economic institutes warned on Thursday.
They added that this impact could double as a result of the additional White House duties announced on April 2, while disclaiming that “specific effects are difficult to quantify,” given the sharp hike in rates.
The institutes forecast Germany’s GDP will pick up by 0.1% and by 1.3% year-on-year in 2025 and 2026, respectively. Europe’s largest economy has come under pressure since the announcement of U.S. tariffs, particularly in its languishing auto sector.
— Ruxandra Iordache
A technician stands on a crane at the Tanjung Priok port in Jakarta, Indonesia, August 3, 2022.
Willy Kurniawan | Reuters
Planned U.S. tariffs could deliver a blow of 0.3 to 0.5 percentage points to Indonesia’s gross domestic product, Indonesian Finance Minister Sri Mulyani Indrawati said, according to Reuters.
The International Monetary Fund projects that the economy of the country, which was hit with U.S. tariffs of 32%, will grow 5.1% this year.
Indonesia is considering higher U.S. imports, trimming taxes and easing import processes amid Washington’s levies, Sri Mulyani said.
— Ruxandra Iordache
New Zeland’s Prime Minister Christopher Luxon speaks during a media stand-up at Parliament on April 10, 2025, in Wellington, New Zealand.
Hagen Hopkins | Getty Images News | Getty Images
New Zealand Prime Minister Christopher Luxon has been engaging on trade relations with officials in partner countries, including the European Union, Ireland, Vietnam, Malaysia, Singapore and the Philippines, according to multiple social media updates.
“Free trade works. It lifts incomes. It creates jobs. It builds partnerships. And it secures peace. I think that’s worth fighting for — and I’m up for that fight,” Luxon said in a post on the X platform.
New Zealand was struck with the White House’s baseline 10% tariff under Trump’s April 2 announcement.
— Ruxandra Iordache
Andrzej Domanski, Poland’s finance minster, during a news conference at the Economic and Financial Affairs Council (ECOFIN) meeting at the European Council headquarters in Brussels, Belgium, on Tuesday, March 11, 2025.
Bloomberg | Bloomberg | Getty Images
Polish Finance Minister Andrzej Domanski welcomed the U.S. temporary suspension of most reciprocal tariffs.
“The first right step towards de-escalation. Less emotion, more focus on economic growth,” he said in a Google-translated social media post.
Poland has historically been a stalwart U.S. ally in Europe, especially in matters of regional security. As a member of the European Union, Poland was struck with 20% reciprocal tariffs under the White House’s April 2 announcement.
— Ruxandra Iordache
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 8, 2025.
Joachim Herrmann | Reuters
European stocks soared at the Thursday market open, with the Stoxx 600 index up by 7.25% by 8:21 a.m. London time.
All sectors were in the green at the start of the session, with banks, autos and health care logging some of the highest hikes, higher by 9.95%, 7.43% and 7.41%, respectively.
— Ruxandra Iordache
The 10-member ASEAN group pledged not to impose any retaliatory measures in response to White House tariffs and to “engage in a frank and constructive dialogue” with Washington on trade relations.
“We regard the U.S. as a longstanding and valued economic partner of ASEAN,” the group said in a statement, adding, “We remain committed to safeguarding ASEAN’s economic interests as well as maintaining strong and mutually beneficial trade relations with the U.S.”
The ASEAN group comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
— Ruxandra Iordache
European Commission President Ursula von der Leyen looks on as she meets with Iceland’s Prime Minister Kristrun Frostadottir (not pictured), in Brussels, Belgium, on April 9, 2025.
Yves Herman | Reuters
European Commission President Ursula von der Leyen welcomed Trump’s decision to pause “reciprocal” tariffs against several nations, adding the bloc “remains committed to constructive negotiations” with the White House.
“It’s an important step towards stabilizing the global economy. Clear, predictable conditions are essential for trade and supply chains to function,” she said in a social media post.
“Tariffs are taxes that only hurt businesses and consumers. That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States.”
At the same time, the EU, which on Wednesday voted to approve its first set of retaliatory steps to counter U.S. tariffs on steel and aluminum, is focusing on diversifying its trade partnerships, von der Leyen said.
— Ruxandra Iordache
U.S. President Donald Trump speaks during an event with the racing champions from NASCAR Cup Series, NTT IndyCar Series, and IMSA WeatherTech SportsCar Championship, at the White House in Washington, D.C., U.S., April 9, 2025.
Nathan Howard | Reuters
In a note to clients on Wednesday evening, Deutsche Bank Research’s George Saravelos noted that U.S. President Donald Trump had mentioned the bond market during his press conference at the White House that day.
“The administration is finally signalling responsiveness to the very extreme market conditions we highlighted in the morning. At the margin, this should reduce the probability that such an extreme policy mix returns,” Saravelos said.
Stocks on Wall Street surged on Wednesday after Trump announced a 90-day pause on country-specific tariffs, with the exception of new duties on China.
Despite the market response, Saravelos warned that “the damage has been done” by Trump’s reciprocal tariffs policy.
“Even if the tariffs are permanently suspended, damage has been done to the economy via a permanent sense of unpredictability in policy,” Saravelos explained. “The events of the last few weeks will resonate amongst global economic partners during the upcoming negotiations on trade and indeed for many years to come. The desire to build greater strategic independence from the US across all fronts will be here to stay.”
— Chloe Taylor
Bill Ackman, CEO of Pershing Square Capital Management, speaking at the Delivering Alpha conference in New York City on Sept. 28, 2023.
Adam Jeffery | CNBC
China has been “isolated as a bad actor” as a result of mounting trade tensions and tariff impositions with the U.S., billionaire investor Bill Ackman said Thursday in a social media post.
“Every American company is immediately moving their supply chains out of China back to the U.S. or to trading partners of the U.S. who are likely to make favorable tariff deals with the U.S. Time is not China’s friend,” he noted.
“As more time goes by, more companies find other and better alternative suppliers outside of China. So China is incentivized to come to the table soon and to be reasonable in their negotiations.”
Washington has doubled down on trade levies with Beijing, which has in turn resorted to countermeasures and complaints to the World Trade Organization. While granting most other nations a tariff reprieve on Wednesday, Trump raised duties against imports from the world’s second largest economy to 125%. China had earlier in the day raised its own tariffs on U.S. goods to 84% in response to White House policies.
— Ruxandra Iordache
South Korean acting President Han Duck-soo speaks during a briefing at the Government Complex in Seoul, South Korea, Monday, March 24, 2025.
Ahn Young-joon | Via Reuters
South Korea will press ahead with efforts to lower tariffs rates in talks with Washington, after acting President Han Duck-soo’s phone call with U.S. President Donald Trump, according to South Korean outlet Yonhap.
South Korea, which exported roughly $127.8 billion to the U.S. in 2024, had been slapped with a 25% tariff rate under the White House announcements of April 2, prior to Trump’s temporary reversal of Wednesday.
“As high-level talks have taken place, we will now prepare concrete proposals and begin negotiations on individual issues with relevant trade authorities,” an official from the South Korean Prime Minister’s Office told reporters on Wednesday. “Our foremost goal is to adjust (U.S.) tariff rates.”
— Ruxandra Iordache
In an aerial view, container ship CMA CGM Osiris is escorted into the Port of Oakland on April 09, 2025 in Oakland, California.
Justin Sullivan | Getty Images
Higher tariffs from China on U.S. imports have kicked in at 12.01 p.m. Beijing time, raising the tariff rate from 34% to 84%.
On Wednesday, China’s ministry of finance announced the 84% tariff rate after U.S. President Donald Trump had increased tariffs on Chinese imports to the U.S. to a net total tariff of 104%.
Trump later raised the tariff on China again, to 125% at about 1.18 a.m. Thursday, saying it would take effect “immediately”.
— Lim Hui Jie
