The Japan Times - Trump unveils 'reciprocal tariffs' plan targeting friends and foes

EUR -
AED 4.127189
AFN 72.488144
ALL 90.959033
AMD 405.219302
ANG 2.011378
AOA 1031.658001
ARS 1736.882499
AUD 1.624648
AWG 2.025667
AZN 1.909796
BAM 1.959278
BBD 2.257607
BDT 139.217123
BGN 1.96423
BHD 0.423251
BIF 3360.480113
BMD 1.12381
BND 1.434653
BOB 13.32141
BRL 6.193991
BSD 1.12089
BTN 105.204748
BWP 15.400858
BYN 3.356258
BYR 22026.673375
BZD 2.254402
CAD 1.587454
CDF 2574.648533
CHF 0.920732
CLF 0.027662
CLP 1088.713242
CNY 7.498961
CNH 7.490698
COP 3681.769693
CRC 507.701216
CUC 1.12381
CUP 26.901753
CVE 110.459109
CZK 24.330539
DJF 199.604316
DKK 7.474617
DOP 68.201063
DZD 152.917826
EGP 60.194969
ERN 16.857148
ETB 181.101852
FJD 2.530597
FKP 0.837412
GBP 0.836171
GEL 2.910871
GGP 0.837412
GHS 13.098017
GIP 0.837412
GMD 83.161866
GNF 9930.672041
GTQ 8.565204
GYD 234.982934
HKD 8.815671
HNL 30.12594
HRK 7.60708
HTG 146.920798
HUF 362.419661
IDR 20327.75381
ILS 3.543097
IMP 0.837412
INR 105.0093
IQD 1702.571947
IRR 2137807.209253
ISK 137.206007
JEP 0.837412
JMD 178.066084
JOD 0.796751
JPY 177.670942
KES 146.005725
KGS 98.277027
KHR 4574.119484
KMF 493.352211
KPW 1011.428836
KRW 1503.483414
KWD 0.349224
KYD 0.934158
KZT 502.902699
LAK 25285.72228
LBP 100377.879988
LKR 372.70158
LRD 190.558258
LSL 18.508945
LTL 3.318318
LVL 0.679781
LYD 7.202786
MAD 10.951144
MDL 20.204865
MGA 5163.906558
MKD 61.549374
MMK 2359.659667
MNT 4047.345118
MOP 9.05317
MRU 45.498765
MUR 52.729462
MVR 17.318108
MWK 1943.650158
MXN 20.746538
MYR 4.555933
MZN 71.822747
NAD 18.508923
NGN 1513.333631
NIO 41.1536
NOK 10.600393
NPR 168.324796
NZD 1.993785
OMR 0.432098
PAB 1.12099
PEN 3.857047
PGK 5.045348
PHP 70.623023
PKR 310.865325
PLN 4.382342
PYG 7006.437072
QAR 4.097473
RON 5.343153
RSD 117.624686
RUB 93.005244
RWF 1658.343713
SAR 4.225993
SBD 9.099824
SCR 15.594276
SDG 675.970589
SEK 10.987466
SGD 1.435684
SHP 0.836199
SLE 25.791802
SLL 23565.735929
SOS 640.63719
SRD 42.201279
STD 23260.595265
STN 24.543567
SVC 9.808411
SYP 14611.775525
SZL 18.427218
THB 37.513108
TJS 10.289966
TMT 3.944573
TND 3.379855
TOP 2.705864
TRY 56.45206
TTD 7.602495
TWD 36.977856
TZS 2972.47485
UAH 51.063452
UGX 4590.066103
USD 1.12381
UYU 45.200235
UZS 13445.867654
VES 1008.260017
VND 28774.589716
VUV 134.858429
WST 3.124307
XAF 655.957
XAG 0.021361
XAU 0.0002739523
XCD 3.037152
XCG 2.020186
XDR 0.794592
XOF 655.957
XPF 119.331742
YER 265.783459
ZAR 18.401386
ZMK 10115.639965
ZMW 22.782441
ZWL 361.866318
SSP 6457.203087
MXV 2.331682
  • RYCEF

    0.1000

    19.81

    +0.5%

  • VOD

    -0.2500

    16.33

    -1.53%

  • CMSC

    -0.2800

    20.12

    -1.39%

  • RBGPF

    -2.0000

    65

    -3.08%

  • RIO

    -0.2500

    94.16

    -0.27%

  • BTI

    -1.2000

    54.85

    -2.19%

  • NGG

    -0.3000

    74.94

    -0.4%

  • GSK

    -0.3500

    49.35

    -0.71%

  • BCE

    -0.4200

    20.14

    -2.09%

  • CMSD

    -0.3400

    19.93

    -1.71%

  • BP

    -0.9100

    43.52

    -2.09%

  • RELX

    0.1700

    33.24

    +0.51%

  • BCC

    -0.6200

    75.97

    -0.82%

  • AZN

    -1.9400

    164.21

    -1.18%

  • JRI

    0.0000

    10.77

    0%

Trump unveils 'reciprocal tariffs' plan targeting friends and foes
Trump unveils 'reciprocal tariffs' plan targeting friends and foes / Photo: ANDREW CABALLERO-REYNOLDS - AFP

Trump unveils 'reciprocal tariffs' plan targeting friends and foes

US President Donald Trump inked plans Thursday for sweeping "reciprocal tariffs" that could hit both allies and competitors, in a dramatic escalation of an international trade war that economists warn could fuel inflation at home.

Text size:

Speaking in the Oval Office, Trump said he had decided to impose the reciprocal duties, telling reporters that US allies were often "worse than our enemies" on trade.

In particular, he singled out the European Union for being "absolutely brutal" in its trade ties with Washington.

The levies would be tailored to each US trading partner and consider the tariffs they impose on American goods, alongside taxes seen as "discriminatory," such as value-added taxes (VATs), said a White House official on condition of anonymity.

With the memo Trump signed on Thursday, the US trade representative, commerce secretary and other officials will propose remedies on a country-by-country basis.

Washington will start by examining economies with which the United States has its biggest deficits or "most egregious issues," the White House official added.

"This should be a matter of weeks, in a few months, but not much longer than that," the official said.

Ahead of Trump's Oval Office comments, Trump trade advisor Peter Navarro told reporters: "Major exporting nations of the world attack our markets with punishing tariffs and even more punishing non-tariff barriers."

- Inflation fears -

Cost-of-living pressures were a key issue in the November election that saw Trump return to power, and the Republican has promised to swiftly reduce prices.

But economists caution that sweeping tariffs on US imports would likely boost inflation, not reduce it, in the near term and could weigh on growth eventually.

Trump acknowledged Thursday that US prices "could go up" due to tariffs, but he expressed confidence that they would ultimately ease.

Since taking office, Trump has announced a broad range of tariffs targeting some of the biggest US trading partners, arguing that they would help tackle unfair practices -- and in some cases using the threats to influence policy.

The president has referred to tariffs as a way to raise revenue, remedy trade imbalances and pressure countries to act on US concerns.

- 'Unfair' treatment -

The White House official said Thursday that the United States has been "treated unfairly," saying a lack of reciprocity is a reason behind the country's "persistent annual trade deficit in goods" which topped $1 trillion last year.

One issue US officials singled out was the EU's 10 percent tariff on US vehicles, while the United States charges only 2.5 percent.

But Sean Bray, policy director of Tax Foundation Europe, noted that the United States might have higher levies on other products, such as a 25 percent rate on imports of light trucks.

Trump also criticized "certain areas of Europe" for a VAT tax of about 20 percent, with Navarro calling the EU the "poster child" for unfair trade with the United States.

Trump's announcement came shortly before he was due to meet Indian Prime Minister Narendra Modi in Washington.

Analysts have warned that reciprocal duties could bring a broad tariff hike to emerging market economies such as India and Thailand, which tend to have higher effective tariff rates on US products.

Countries such as South Korea that have trade deals with Washington are less at risk, analysts believe.

New Delhi offered some quick tariff concessions ahead of Modi's visit, including on high-end motorcycles.

During election campaigning, Trump promised: "An eye for an eye, a tariff for a tariff, same exact amount."

For example, if India imposes a 25 percent tariff on US autos, Washington will have a 25 percent tariff as well on imports of autos from India, financial services group Nomura said in a report this week.

The consideration of non-tariff factors might shift this calculus.

"Trump's objective of implementing reciprocal tariffs is to ensure fair treatment for US exports, which could indirectly also address US trade imbalances with partner countries," Nomura analysts said.

K.Abe--JT