Trump's tariff strategy sparks fears of global trade conflict
President Donald Trump announced on Sunday that the reciprocal tariffs, to be disclosed this week, will apply to all countries with which the USA maintains trade relations.
The American leader revealed plans for an extensive customs policy to be announced on Wednesday, which he has dubbed "Liberation Day". Thus far, the US administration has imposed tariffs on aluminium, steel, and cars, in addition to increasing tariffs on all goods imported from China.
"You’d start with all countries. Essentially all of the countries that we’re talking about," stated President Trump, as quoted by Reuters during a conversation with reporters aboard Air Force One. He added that he intends to introduce a package of reciprocal tariffs against countries that levy charges on US exports, aiming to create a level playing field.
In February, President Trump signed a memorandum directing officials to analyse individual countries and prepare a list of suitable remedial measures. As he suggested last week, he may limit his plans by imposing tariffs at a lower rate in some cases, compared to those other countries apply to the USA.
Experts cited by ABC News previously warned that the new tariffs could escalate the global trade war, potentially increasing the prices of many consumer goods and raising the risk of an economic slowdown.
Last year, the USA recorded the largest trade deficits with China, the European Union, Mexico, Vietnam, Taiwan, Japan, South Korea, India, and Canada. ABC News emphasises that reciprocal tariffs could result in higher prices for imported goods in the American market.
