US President Donald Trump plans to announce reciprocal tariffs ahead of Prime Minister Narendra Modi’s visit to America, the White House said.
White House Press Secretary Karoline Leavitt told reporters she believed Trump’s tariff plan could be announced before he meets with PM Modi on Thursday.
PM Modi is scheduled to reach US on Thursday and trade and tariff will likely to become one of the major issues that they will discuss. Trump’s announcement of imposing a 25 per cent tariff on steel and aluminium has already feared the Indian sellers and this new plan may only give a fever to the manufacturers and distributors.
Trump pledged on Wednesday to introduce “reciprocal tariffs” on other nations, indicating he might sign an executive order within 24 hours, potentially escalating international trade tensions, AFP reported.
During his campaign, Trump stated: “An eye for an eye, a tariff for a tariff, same exact amount.”
Experts suggest these reciprocal measures would involve adjusting US import tariffs to match those imposed by exporting nations on American goods.
In an Oval Office statement on Wednesday, Trump indicated he could authorise reciprocal duties either later that day or Thursday morning.
Economic experts caution that such measures could result in widespread tariff increases affecting developing economies such as India and Thailand.
Trump has implemented extensive tariffs on trading partners since assuming office on January 20.
A White House official disclosed to AFP on Wednesday that Trump’s proposed 25 percent duties on steel and aluminium imports would be additional to existing tariffs on Canada and Mexico.
In early February, Trump announced comprehensive tariffs of 25 percent on Canadian and Mexican products, with Canadian energy imports facing a reduced rate of 10 percent.
However, he subsequently suspended these blanket tariffs on neighbouring countries for one month after they committed to addressing illegal immigration and fentanyl trafficking.
According to the anonymous official, if these tariffs resume after the 30-day period, duties on Canadian and Mexican steel and aluminium could reach 50 percent.
Canadian Finance Minister Dominic LeBlanc, visiting Washington with provincial leaders, told journalists Wednesday that Ottawa would await America’s tariff decision.
“We have a number of weeks to work together, and President Trump’s words were very precise to structure an economic deal with Canada,” LeBlanc stated during meetings with US officials, including National Economic Council director Kevin Hassett and Commerce Secretary nominee Howard Lutnick.