US tariffs to ‘rock’ global economies

AFP | Washington
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Trump ‘perfecting’ new sweeping measures that could ignite trade war

US President Donald Trump kept the world’s leading economies on edge yesterday as he made final preparations for a “Liberation Day” announcement of sweeping new tariffs that could trigger a global trade war.

Trump has promised to be “very kind” when he unveils the so-called reciprocal tariffs today, but uncertainty reigned over which countries would be targeted and by how much.

His plan has prompted vows of retaliation from major economies, including the European Union and Canada, and fears that it could unleash a recession at home and abroad.

Decision

The White House said Trump, who will announce the tariffs in the Rose Garden at 20:00 GMT on Wednesday, had “made a decision” but was still putting the finishing touches on the measures.

“He is with his trade and tariff team right now, perfecting it to make sure this is a perfect deal for the American people and the American worker,” Press Secretary Karoline Leavitt told a briefing.

The White House would not confirm reports in US media that Trump was considering across-the-board tariffs of around 20 percent rather than different amounts for different countries.

But Leavitt said the tariffs would take effect “immediately” after the announcement, meaning there would be no time for foreign leaders to negotiate carve-outs before they start.

The Republican billionaire, a fan of tariffs for decades, indicated on Monday night that the tariffs would be lower than what other countries would be charging the US.

Very Nice

“We’re going to be very nice, relatively speaking. We’re going to be very kind,” he said in the Oval Office.

Critics warn that the strategy risks a global trade war, provoking a chain reaction of retaliation.

America’s trading partners have been preparing to respond, even as they continue efforts to make last-minute negotiations with Trump.

“We are going to be very deliberate in terms of the measures we take to fight for Canada,” Canadian Prime Minister Mark Carney, who spoke to Trump last week, said yesterday.

Solution

The European Union, which Trump has accused of trying to “screw” the United States, said yesterday it still hoped to negotiate a solution—but that “all instruments are on the table” to retaliate if necessary.

British Prime Minister Keir Starmer spoke with Trump on “productive negotiations” towards a UK-US trade deal. Vietnam said yesterday it would slash duties on a range of goods to appease Trump.

“The president is always up to take a phone call, always up for a good negotiation,” Leavitt said.