• Source:JND
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Washington:  US President Donald Trump said he will sign an order on Wednesday to impose reciprocal tariffs on every country that charges duties on US imports. White House Press Secretary Karoline Leavitt during a press conference categorically said the issue of reciprocal taxes would come up during the crucial bilateral meeting with Trump and Prime Minister Narendra Modi.

 "Very simple logic"

When asked What about the US on reciprocal tariff, Leavitt said that's going to come before Prime Minister Modi. "It is very simple logic as to why the President wants to impose reciprocal tariffs. It is the golden rule which we learned when we were growing up in school," she said.

"Treat others the way you want to be treated. Far too many nations around this world have been ripping off the United States of America for far too long. And that's why the president believes that this will be a great policy that will benefit American workers and improve our national security, added Leavitt.

Trump continues to take bold action 

While addressing a press briefing on Wednesday (local time), Leavitt noted that Trump continues to take bold action to protect the steel and aluminium industries of the US. "On trade, President Trump continues to take bold action to protect America's critical steel and aluminium industries, much like he did during his first term. President signed proclamations to close existing loopholes and exemptions to restore a true 25 per cent tariff on steel and elevate the tariff on aluminium to 25 per cent as well. This administration believes these tariffs will protect our national security and put American workers first," Karoline Leavitt said.

Trump had said on Monday that he would announce reciprocal tariffs over the following two days and that he was also looking at separate tariffs on cars, semiconductors and pharmaceuticals. Republican U.S. House of Representatives Speaker Mike Johnson told Reuters on Wednesday that he believed Trump is considering exemptions that would include the automotive and pharmaceutical industries, among others.

US tariff war

"But I'm not certain. You have to wait, ask the White House about that," he said. The White House did not immediately respond to a request for comment. Economists broadly see tariffs as presenting more upside risk to inflation than not, and there are signs that US inflation is heating up. Bureau of Labor Statistics data released on Wednesday showed consumer prices increased in January by the most in nearly 1-1/2 years. The president stunned markets on Monday by announcing tariffs on all steel and aluminium imports beginning on 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 aluminium imports scrambling to offset an expected jump in costs. Trade ministers of the 27-country EU met by video conference on Wednesday to discuss their response. The EU will prioritize negotiations over retaliatory countermeasures for now in an effort to avoid a damaging trade war, comments from officials following the meeting signalled.

An EU government official said ministers discussed potential responses, including reinstating the countermeasures imposed in 2018 on products like bourbon and Harley-Davidson motorcycles in response to the first Trump administration's tariffs on steel and aluminium. 

(With inputs from agency)