U.S. President Donald Trump said he would impose reciprocal tariffs as soon as Wednesday evening on every country that charges duties on U.S. imports, in a move that ratchets up fears of a widening global trade war and threatens to accelerate U.S. 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.
Trump's latest round of market-rattling tariffs comes as Indian Prime Minister Narendra Modi is due to visit the White House on Thursday. The Trump administration has complained that India has high tariffs that lock out U.S. imports.
Republican U.S. House of Representatives Speaker Mike Johnson said 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 1-1/2 years.
The president has already stunned markets by announcing tariffs on all steel and aluminum imports beginning on March 12. That drew condemnation from Mexico, Canada and the European Union, while Japan and Australia said they were seeking exemptions from the duties.
The news sent industries reliant on steel and aluminum imports scrambling to offset an expected jump in costs.
The EU will prioritize negotiations over retaliatory countermeasures to avoid a damaging trade war, officials signaled 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 aluminum.
Source : Reuters