US President Donald Trump has announced that his upcoming tariffs will apply to “all countries,” not just those with significant trade imbalances with the United States.
This move is expected to affect global trade and has sparked concerns of a potential trade war. Trump’s tariff plan, set to take effect on April 2, aims to address trade practices deemed unfair by the US government. The president has promised a “Liberation Day” when reciprocal levies will be unveiled.
Despite initial expectations that the tariffs would target a select group of countries, Trump revealed that “essentially all countries” would be affected. This move has raised concerns among trade experts and economists, who warn of potential retaliation from other countries.
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The US has already imposed tariffs on steel and aluminum imports, as well as additional levies on imports from China. Tariffs on imported autos are set to take effect on April 3.
Trump’s top trade aide, Peter Navarro, estimates that the tariffs could raise $100 billion annually from auto imports alone. Additionally, other tariffs are expected to generate $600 billion per year, totaling $6 trillion over a decade.
The president has defended the tariffs as a means to raise government revenue and revitalize US industry. However, critics argue that the move could stoke inflation and trigger a economic downturn.
India, which has been pushing for an exemption from the reciprocal tariff, is likely to be affected by the tariffs. The US and India are currently negotiating tariff concessions under a bilateral trade agreement.
