Trump trade advisers finalize reciprocal US tariffs as fears mount

(Reuters)

WASHINGTON, Feb 12 – Donald Trump’s trade advisers were finalizing plans on Wednesday for the reciprocal tariffs the U.S. president has vowed to impose on every country that charges duties on U.S. imports, ratcheting up fears of a widening global trade war.

Trump stunned markets with his decision on Monday to impose tariffs on all steel and aluminum imports beginning March 12. The plans drew condemnation from Mexico, Canada and the European Union, while Japan and Australia said they were seeking exemptions from the duties.

The news sent industries reliant on steel and aluminum imports scrambling to offset an expected jump in costs.

Last week, Trump slapped an additional 10% tariff on Chinese goods, effective February 4, with Chinese countermeasures taking effect this week.

He delayed a 25% tariff on goods from Mexico and Canada for a month until March 4 to allow negotiations over steps to secure U.S. borders and halt the flow of fentanyl.

Some U.S. workers welcomed Monday’s metal tariffs, but many manufacturing-heavy firms agonized over next steps, warning the tariff hike would reverberate across supply chains, affecting all businesses that rely on the materials.

White House officials have been tight-lipped about the structure or timing the next tariffs, with one source saying the announcement might come later in the week.

Trump said on Monday he would announce reciprocal tariffs over the next two days on all countries that impose duties on U.S. goods, and said he was also looking at separate tariffs on cars, semiconductors and pharmaceuticals.