WASHINGTON – U.S. President Donald Trump announced plans to impose reciprocal tariffs on countries that levy duties on American imports, fueling concerns of an expanding global trade war and rising inflation.
“I may sign it later today or tomorrow morning, but we will be implementing reciprocal tariffs,” Trump stated at the White House.
The move comes ahead of Indian Prime Minister Narendra Modi’s visit to Washington on Thursday, as the U.S. administration has criticized India’s high tariffs on American goods.
House Speaker Mike Johnson suggested that Trump might consider exemptions for certain industries, including automotive and pharmaceuticals, though details remain uncertain.
Economists warn that tariffs could drive inflation higher, with fresh data showing consumer prices rose in January at the fastest pace in nearly 18 months.
Trump has already sparked controversy by imposing tariffs on all steel and aluminum imports starting March 12, drawing backlash from Mexico, Canada, and the European Union. Japan and Australia have sought exemptions from the new duties.
European officials have hinted at potential countermeasures, including reinstating tariffs on U.S. products like bourbon and Harley-Davidson motorcycles, first imposed in response to Trump’s 2018 trade policies.
Trump also delayed a planned 25% tariff on Mexican and Canadian goods until March 4 to allow negotiations over border security and fentanyl trafficking.
While some U.S. workers support the tariffs, manufacturing firms and businesses warn of rising costs and supply chain disruptions. Experts also argue that structuring reciprocal tariffs will be complex, with trade specialists noting that every country follows different customs duties.
Trump’s trade adviser Peter Navarro downplayed concerns, claiming previous tariffs under Trump’s administration did not trigger inflation spikes. However, global markets remain on edge as the policy takes shape.
