Donald Trump’s trade advisers were finalizing plans for reciprocal tariffs on countries that impose duties on U.S. imports, escalating concerns of a global trade war.
On Monday, Trump announced tariffs on all steel and aluminum imports starting March 12, drawing criticism from Mexico, Canada, and the EU. Japan and Australia sought exemptions, while industries dependent on these metals scrambled to manage rising costs.
Last week, he imposed a 10% tariff on Chinese goods, effective February 4, prompting immediate Chinese countermeasures. He delayed a 25% tariff on Mexico and Canada until March 4, linking it to border security talks. While some U.S. workers supported the tariffs, manufacturing firms warned of supply chain disruptions.
White House officials remained silent on the next steps, but Trump vowed to announce reciprocal tariffs within two days. He also hinted at tariffs on cars, semiconductors, and pharmaceuticals.
Trade experts warned that structuring reciprocal tariffs would be complex. William Reinsch of the Center for Strategic and International Studies suggested a flat 10-20% rate might be easier than matching each country’s tariff rates.
Damon Pike, a trade specialist, called Trump’s plan a “monumental undertaking,” noting that the World Customs Organization has 186 members with 5,000 different tariff classifications. Legal options include the Trade Act of 1974, limiting tariffs to 15% for six months, or the rarely used Tariff Act of 1930.
Reinsch cautioned that matching foreign tariffs could backfire, raising U.S. prices without benefiting domestic industries. “If Colombia has high coffee tariffs, we’d impose the same, but we don’t grow coffee—only U.S. consumers would suffer,” he said.
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