BY ANDREA SHALAL AND DAVID LAWDER
WASHINGTON- Donald Trump’s trade advisers were finalizing plans on Wednesday for the reciprocal tariffs the US president has vowed to impose on every country that charges duties on US 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 percent tariff on Chinese goods, effective February 4, with Chinese countermeasures taking effect this week.
He delayed a 25 percent tariff on goods from Mexico and Canada for a month until March 4 to allow negotiations over steps to secure US borders and halt the flow of fentanyl.
Some US 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 US goods, and said he was also looking at separate tariffs on cars, semiconductors and pharmaceuticals.
Trade experts say structuring the reciprocal tariffs that Trump wants poses big challenges for his team, which may explain why the latest duties were not announced on Tuesday.
William Reinsch, senior fellow at the Center for Strategic and International Studies, said Trump officials could opt for a more easily implemented flat 10 percent or 20 percent tariff rate, or a messier approach that would require separate tariff schedules matching US tariffs to each other country’s rates.
One source tracking work on the tariffs said details were still being worked out late Tuesday.
Damon Pike, a trade specialist and principal with the US division of accounting firm BDO International, said the reciprocal tariffs that Trump envisioned would result in a monumental undertaking, given that each of the 186 members of the World Customs Organization had different duty rates.
“At the international level, there’s something like 5,000 different descriptions at the 6-digit (product subheading) level, so 5,000 times 186 nations. It’s almost an artificial intelligence project,” he said.
