US President Donald Trump inked plans Thursday for sweeping “reciprocal tariffs” hitting both allies and competitors, in a dramatic escalation of an international trade war that economists warn could fuel inflation at home.
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 issues.
The levies would be tailored to each US trading partner and consider non-tariff factors including value-added tax (VAT).
“Major exporting nations of the world attack our markets with punishing tariffs and even more punishing non-tariff barriers,” Trump trade advisor Peter Navarro told reporters, taking aim at the European Union in particular over VAT.
Washington will start by examining economies with which the United States has its biggest deficits or “most egregious issues,” said a White House official.
