US President Donald Trump announced plans to implement reciprocal tariffs on nations that levy duties on US imports, raising concerns about an expanding global trade war and possible US inflation increases.
“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.
Meanwhile, Prime Minister Narendra Modi has landed in US on Thursday and trade and tariff will likely to become one of the major issues that they will discuss.
The earlier announcement of 25 per cent tariffs on steel and aluminium has already caused anxiety among Indian sellers, and this additional measure could further impact manufacturers and distributors.
“An eye for an eye, a tariff for a tariff, same exact amount,” Trump declared during his campaign.
Analysts indicate these reciprocal actions would align U.S. import tariffs with those other nations impose on American products.
Financial specialists warn that such policies could lead to increased tariffs affecting emerging economies like India and Thailand.
Since taking office on January 20, Trump has introduced substantial tariffs on trading partners.
A White House source told AFP on Wednesday that Trump’s proposed 25 per cent duties on steel and aluminium imports would supplement existing tariffs on Canada and Mexico.
In early February, Trump introduced broad 25 per cent tariffs on Canadian and Mexican goods, with a lower 10 percent rate for Canadian energy imports. He later paused these comprehensive tariffs on neighbouring nations for 30 days after they agreed to address illegal immigration and fentanyl trafficking concerns.
The unnamed official indicated that if these tariffs resume post-30-day period, duties on Canadian and Mexican steel and aluminium might increase to 50 per cent.