New York, Feb 14 President Donald Trump has unveiled a plan to impose "fair and reciprocal" tariffs on all countries, accusing them of charging higher tariffs compared to what the US charges, but did not immediately impose tariffs.
Trump did not set the new tariffs, but only issued a memorandum on Thursday asking his nominees, Howard Lutnick for Commerce Secretary, and Jamieson Greer for international trade representative to come up within 180 days a tariff plan for each country.
Besides tariffs, they were also charged with considering government subsidies for exports and manipulated exchange rates to give them advantages.
The 180-day deadline leaves time for negotiations by countries that could be affected by new tariffs.
Issuing the memorandum, Trump said, "In almost all cases, they're charging us vastly more than we charge them but those days are over."
"I've decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America," he said.
Making a pitch for his 'Make in America' vision, Trump said if manufacturing was reshored to the US, they would not face tariffs.
The reciprocal tariff plan memo was issued hours before Trump's meeting with visiting Prime Minister Narendra Modi, a topic likely to come up in their talks.
Trump's adviser for trade and manufacturing, Peter Navarro, indicated that India, along with Japan, and the European Union could be targets for new tariffs that will be recommended.
In the recent Budget, India reduced tariffs on heavy motorcycles, a pet peeve of Trump, and some agricultural products from the US.
Trump is hoping to fill the budgetary shortfalls, especially with his plans for tax cuts, by charging higher tariffs.
To date, Trump has implemented only one set of the series of tariffs he has announced: an additional 10 per cent levy on Chinese imports on top of existing duties. A 25 per cent duty on steel and aluminum imports announced this week, as well as 25 per cent duties on imports from Canada and Mexico that Trump suspended, would not go into effect until the first week of March.
His nominee to head the Office of Management and Budget, Russell Vought, was charged with preparing a report on the fiscal impact of new tariffs.
Trump threatened additional duties on cars, semiconductors, and pharmaceuticals in addition to the reciprocal tariffs, which would be announced later.
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