US president’s remarks dampen hopes that tariffs would target only certain countries.
United States President Donald Trump has said his soon-to-be-announced reciprocal tariffs will apply to “all countries”, pouring cold water on hopes that only economies with the biggest trade imbalances with the US would be targeted.
Speaking to reporters on board Air Force One on Sunday, Trump said that his long-anticipated tariff announcement on April 2 would “start” with all countries.
You’d start with all countries,” Trump told reporters. “Essentially, all of the countries that we’re talking about.”
Trump’s remarks come after his administration had played down the scope of the tariffs set to be unveiled on April 2, which the US president has dubbed “liberation day”.
White House economics adviser Kevin Hassett suggested earlier this month that the measures would be heavily focused on 10 to 15 countries that account for the bulk of the US trade deficit.
“There are more than 100 countries that don’t really have any tariffs on us and don’t have any non-tariff barriers,” Hassett said in an interview with Fox Business.
Trump himself also appeared to play down the severity of the upcoming tariffs last week, saying the reciprocal measures would be “very lenient” and that people would be “surprised”.
While the specific details of Trump’s plans are unclear, his administration has pledged to hit countries with duties that are equal to the tariffs and non-tariff trade barriers, such as subsidies, that they impose on US exports.
Trump, who last week announced a 25 percent tariff on all auto imports, has long accused other countries of exploiting the US on trade, casting his protectionist economic agenda as necessary to revive domestic manufacturing and create jobs.
Trump’s latest tariffs on cars and other vehicles have strained Washington’s relations with some of its closest partners and allies, including Canada, the European Union and Japan, all of which have large automotive industries.
Trump’s back-and-forth announcements on tariffs have also sent jitters through global markets, with investors struggling to gauge if the US president intends to make his tariffs permanent or views them as primarily a bargaining tool.
Trump said last week that he was “certainly open” to making deals with countries to avoid the tariffs after the April 2 announcement.
Asian stock markets fell sharply on Monday in anticipation of further disruption to global trade.
Japan’s benchmark Nikkei 225 and South Korea’s benchmark KOSPI were down 3.85 percent and 2.55 percent, respectively, as of 03:00 GMT.
Australia’s ASX 200 had fallen 1.56 percent, while Hong Kong’s Hang Seng was down 1.20 percent.
Gold, a traditional safe-haven asset during periods of market volatility, rose above $3,100 for the first time, trading at a record high of $3,106.79 per ounce.
