Tit for tat: An employee at a steel plant in Tlaxcala, Mexico. Trump’s move will result in tariffs on every country that imposes duties on US goods. — Reuters
WASHINGTON: US president Donald Trump says he will impose reciprocal tariffs soon on every country that charges duties on US imports, in a move that ratchets up fears of a widening global trade war and threatens to accelerate US inflation.
“I may do it later on or I may do it tomorrow morning, but we’ll be signing reciprocal tariffs,” Trump told reporters at the White House yesterday.
Trump’s latest round of market-rattling tariffs comes as Indian Prime Minister Narendra Modi visited the White House yesterday.
The Trump administration has complained that India has high tariffs that lock out US imports.
Republican US House of Representatives Speaker Mike Johnson told Reuters that he believed Trump is considering exemptions that would include the automotive and pharmaceutical industries, among others, but said he was not certain.
Economists broadly see tariffs as an inflation risk, and data released on Wednesday showed consumer prices increased in January by the most in nearly one and a half years.
The president has already stunned markets by announcing tariffs on all steel and aluminium imports beginning on March 12.
That drew condemnation from Mexico, Canada and the European Union (EU), while Japan and Australia said they were seeking exemptions from the duties.
The news sent industries reliant on steel and aluminium imports scrambling to offset an expected jump in costs.
The EU will prioritise negotiations over retaliatory countermeasures for now in an effort to avoid a damaging trade war, officials signalled earlier on Wednesday.
An EU government official said ministers considered reinstating countermeasures imposed in 2018 on products like bourbon and Harley-Davidson motorcycles in response to Trump’s tariffs on steel and aluminium.
EU trade chief Maros Sefcovic spoke on Wednesday with Hassett, Commerce Secretary-designate Howard Lutnick and US trade representative nominee Jamieson Greer.
Last week, Trump imposed an additional 10% tariff on Chinese goods, effective Feb 4, with Chinese countermeasures taking effect this week.
He delayed a 25% tariff on goods from Mexico and Canada until March 4 to allow negotiations over steps to secure US borders and halt the flow of the drug fentanyl.
Some US workers have welcomed the metal tariffs, but manufacturing firms have warned the hike would reverberate across supply chains and lead to higher prices.
Europe’s steelmakers are also worried that US tariffs will lead to a flood of cheap steel into Europe.
Canadian Prime Minister Justin Trudeau, speaking to reporters in Brussels, said some Americans would lose their jobs and US growth would suffer from Trump’s metals tariffs. — Reuters
