President Donald Trump announced plans to impose reciprocal tariffs as early as Wednesday evening or Thursday morning, according to remarks made to reporters at the White House (Reuters). The move raises concerns among U.S. trade partners, with India potentially in focus ahead of Prime Minister Narendra Modi’s scheduled visit to Washington on Thursday.
European Union officials indicated they would prioritize negotiations over immediate retaliation, aiming to prevent a broader trade conflict. However, questions remain regarding the implementation of the tariffs, with BDO International highlighting the complexity of the task, citing the 186-member World Customs Organization’s vastly differing tariff structures. The firm described the undertaking as “almost an AI project.”
Uncertainty persists over potential exemptions, with Republican House Speaker Mike Johnson suggesting Trump is considering carve-outs for industries such as autos and pharmaceuticals. However, Johnson noted he was not certain of any final decisions. This follows exemption requests from Australia and Japan, though Australia’s prospects remain unclear following remarks from Trump trade adviser Peter Navarro. Meanwhile, Japan continues discussions with Washington after the confirmation of universal levies on steel and aluminum imports set to take effect on March 12.
South Korea has also sought talks with U.S. officials (Reuters), though analysts suggest the impact may be limited due to previous trade agreements that have largely eliminated effective tariff rates on American exports. As global trade partners react to the potential new measures, further details on tariff structures and possible exemptions are expected in the coming days.
Data sourced from Factset Research System Inc. and Reuters
