Washington: US President Donald Trump stated on Monday that he would be "very kind" to trading partners when he unveils additional tariffs this week, risking global upheaval to address what he describes as unfair trade imbalances.
Trump, who has been leveraging unprecedented presidential powers since taking office in January, indicated he could announce the specifics of "reciprocal tariffs" as early as Tuesday night. The Republican billionaire argues that such measures are necessary because the world’s largest economy has been "ripped off by every country in the world," promising a "Liberation Day" for the United States. He may also introduce more sector-specific tariffs.
When pressed for details, Trump told reporters on Monday, "You’re going to see in two days, which is maybe tomorrow night or probably Wednesday." However, he added, "We’re going to be very nice, relatively speaking, we’re going to be very kind."
Critics warn that this strategy could trigger a global trade war, prompting retaliatory measures from major trading partners such as China, Canada, and the European Union. In anticipation of Trump’s expected tariff announcement, China, South Korea, and Japan agreed on Sunday to strengthen free trade among themselves.
Trump, however, dismissed concerns that his actions might push allies closer to Beijing, noting that a deal on TikTok could also be linked to tariffs on China.
White House Press Secretary Karoline Leavitt told reporters that the goal on Wednesday would be to announce "country-based tariffs," though Trump remains committed to imposing separate sector-specific charges.
The uncertainty has rattled markets, with key European and Asian indexes closing lower, although the Dow and the S&P 500 managed slight gains. Market anxiety intensified after Trump said on Sunday that his tariffs would include "all countries."
The Wall Street Journal reported that advisors have considered imposing global tariffs of up to 20 percent, targeting nearly all US trading partners. Trump has remained vague, stating that his tariffs would be "far more generous" than those already levied against US products.
Economic Pain
Trump’s focus on tariffs has heightened fears of a US recession. Goldman Sachs analysts increased their 12-month recession probability from 20 percent to 35 percent, citing a "lower growth forecast, falling confidence, and statements from White House officials indicating willingness to tolerate economic pain." The firm also raised its forecast for underlying inflation by the end of 2025.
China and Canada have already imposed counter-tariffs on US goods, while the EU has unveiled measures set to take effect in mid-April. Additional countermeasures could follow Wednesday’s announcement.
IMF chief Kristalina Georgieva noted at a Reuters event on Monday that Trump’s tariffs are causing anxiety, though their global economic impact is not expected to be dramatic.
Ryan Sweet of Oxford Economics advised to "expect the unexpected," predicting that Trump would "take aim at some of the largest offenders."
In addition to reciprocal country tariffs, Trump could introduce sector-specific levies on industries like pharmaceuticals and semiconductors. He previously announced auto tariffs set to take effect on Thursday.
Economists anticipate that the upcoming measures could target the 15 percent of trading partners with persistent trade imbalances with the US, a group referred to by US Treasury Secretary Scott Bessent as the "Dirty 15." The US has significant goods deficits with China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, and India.
Existential Moment
US trade partners are scrambling to minimize their exposure, with reports suggesting India might lower some duties.
European Central Bank President Christine Lagarde stated on Monday that Europe should move toward economic independence, calling it an "existential moment" for the continent.
Meanwhile, British Prime Minister Keir Starmer discussed "productive negotiations" for a UK-US trade deal with Trump, and German Chancellor Olaf Scholz said the EU would respond firmly to Trump but remains open to compromise.
Greta Peisch, a partner at law firm Wiley Rein, noted that it is "entirely possible" for new tariffs to be quickly reduced or suspended. In February, Washington paused steep levies on Mexican and Canadian imports for a month as negotiations continued.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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