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Trump tariff plan a secret till last minute? US President Donald Trump's reciprocal tariffs will kick in from Wednesday (Apr 2), but there are still contradictory reports on how exactly it would be implemented. Ahead of the announcement day, which Trump described as 'Liberation Day', there is frenzied discussions inside the US administration to make it happen.
“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off this country for decades," White House press secretary Karoline Leavitt said on Monday, adding, "He’s doing this in the best interest of the American worker.”
Trump's tariff threat shakes up global oil trade
The tariff plan is set to be announced at the Rose Garden in the White House on Wednesday.
But as of Tuesday, reports indicate that no final decision has been made on the ways of implementing the tariffs.
Reciprocal tariffs: What are the options before Trump administration?
Here are some of the proposals being discussed, as per US media reports.
> Tariffs around 20 per cent of all imports to the US. This would raise import duties on products from every country instead of more targeted approaches. This is a 'universal tariff' which Trump seemed to have favoured in recent remarks, which is simpler than measures specific to each country. When he said on Sunday “you’d start with all countries,” many reports interpreted it to mean that he was suggesting such a thing: same stick for all trading partners.
> Trump could make further changes, using the 1977 International Emergency Economic Powers Act, which gives the president the powers to change international trade
> Impose additional tariffs on sectors such as automobile and pharmaceutical imports. This is something that could particularly affect India
> Try specific and different tariff rates for individual countries
> One flat rate on imports of between 15 per cent and 25 per cent
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> Exemptions on import of products that the US does not manufacture
> Announce specific tariffs for specific sectors, which will be higher than a flat rate. These sectors are most likely to be auto, copper, pharma and timber. When and at which rates it will be implemented is not clear.
> A specific tariff number for each country. This plan is problematic as US trade partners can resort to round-tripping, sending items via third countries that are not affected by the tariffs.
A man-made recession: How will the reciprocal tariffs affect US?
The tariffs, if implemented, will kick in for the April-June quarter. There's widespread fear that the plan could lead to stock market turmoil, and even hit the global economy.
The US could most likely plunge into a man-made recession for at least a year. The cost of living could go up, as many products imported by the US will become dearer.
There is also the possibility of a rise in joblessness in the US.
US trading partners like China, Canada and Mexico have vowed countermeasures, while India has been trying to reach a negotiated settlement.
(With inputs from agencies)