Trump Starts the Clock for New Tariffs to Take Effect

By Staff, Agencies

US President Donald Trump warned that he could re-impose “reciprocal” tariffs on some countries in as soon as two or three weeks, a potentially significant re-escalation of the global trade war that has already raised fears of a US and global recession.

“In the end, I think what’s going to happen is, we’re going to have great deals, and by the way, if we don’t have a deal with a company or a country, we’re going to set the tariff,” Trump said in an Oval Office ceremony. “I’d say over the next couple of weeks, wouldn’t you say? I think so. Over the next two, three weeks. We’ll be setting the number.”

Trump on April 9 paused his massive so-called reciprocal tariffs, which aren’t technically reciprocal. The reprieve was supposed to be for 90 days to allow countries to negotiate with the administration. Trump officials have said around 90 to 100 countries have offered to negotiate deals, setting a tremendously difficult task before trade negotiators to race against the clock to make new commitments.

Without those negotiated deals, Trump could impose his tariffs on countries that rise as high as 50% – except for China, which the Trump administration set at an astronomical 145%.

It’s not clear what new tariffs Trump will set on countries that are unable to strike a deal with the United States in the coming weeks – and whether those new tariffs will permanently supersede the paused reciprocal tariffs or merely serve as an interim tariff as negotiations continue. In the meantime, the United States maintains a 10% universal tariff on virtually every good imported to America, plus higher rates for certain goods.

Trump’s back-and-forth stance on tariffs has caused incredible uncertainty for businesses and consumers. It has also shaken markets, sending stocks and US assets tumbling. Despite a two-day market rebound, the S&P 500 has still shed $7 trillion in value since hitting a record high in mid-February.

Major organizations have warned about a global economic slowdown as Trump’s import levies threaten to reshape global trade and redirect flows of money around the world.

Even as the reciprocal tariffs on dozens of countries were paused, the tit-for-tat trade war escalated dramatically with China over the past couple months, alarming Wall Street and economists alike. Many major banks predicted the massive tariffs — as well as China’s major retaliatory tariffs on US goods — would plunge the US and global economies into a recession.