President Donald Trump announced plans to introduce reciprocal tariffs on multiple countries, potentially escalating trade tensions. Trump stated the announcement would likely occur early the following week, possibly Monday or Tuesday.

Trump says the goal is to ensure the U.S. is treated "evenly" with other countries, implementing tariffs on American imports that mirror the rates trading partners impose on American exports.

The Trump administration views increased tariffs on foreign imports as a means to generate revenue, potentially offsetting the costs of extending the 2017 tax cuts.

While the specific countries remain unknown, Trump's advisor Peter Navarro suggested prioritizing countries with large trade deficits with the U.S. and relatively high tariffs, such as China and India.

Tariffs targeting automobiles are under consideration to equalise trade. The U.S. currently has a 2.5% tariff on auto imports, while the European Union has a 10% tariff.

The move aligns with Trump's campaign promise and aims to reshape global trade relationships to favour the U.S. Trump has used tariffs to address trade deficits and other policy goals, such as preventing illegal immigration and drug trafficking.

ANI