Stock markets have fallen in Asia after President Donald Trump suggested that the new tariffs he is set to announce this week will be hit by all countries, not just countries with the biggest trade imbalance with the US.
Comments come as he prepares to announce a massive slate of import taxes on Wednesday, what he called America’s “liberation day.”
The measure comes in addition to an increase in taxation on all goods from China, on top of the tariffs already imposed by Washington on aluminum, iron and vehicles.
“You start with every country,” Trump told Air Force 1 reporters. “Essentially, every country we are talking about.
However, he said his administration would be “more generous” and “kind” than the country had gone to the United States.
The president’s latest comments came last week despite suggesting he might scale back his tariff plans.
White House economic adviser Kevin Hassett recently told Fox Business Channel that tariffs focus on 10-15 countries with the worst trade obstacles, but did not name them.
Trump sees tariffs as a way to protect the US economy from unfair competition and as a negotiation tip to win better US trading terms.
Trade war concerns have made markets uncertain and create fear of the US recession.
On Monday morning in Asia, Japan’s 225 benchmark share index was 4% lower, Hong Kong’s Hangsen fell 1.6%, and Korea’s Kospi fell about 2.5% lower.
Over the weekend, Trump’s advisors reiterated his view that planned tariffs could raise trillions of dollars and help create jobs in the United States.
His top trade adviser, Pete Navarro, pointed to the enormous revenues that tariffs said were raised.
Taxes on all car imports could raise $100 million (£77.3 billion) a year, Navarro said. All planned tariffs could raise $600 million a year for roughly a fifth of the total imports of goods into the US, he added.
A White House fact sheet released last week suggests that all import duties could create nearly 3 million U.S. jobs.
All of these raise interests in all countries attempting to trade with the US over trade policies, including the UK.
However, other jurisdictions such as the EU and Canada have already said they are preparing various retaliatory trade measures.
Separately, Trump said a deal would be agreed with a provision by the Chinese owners of Tiktok to sell the app before the Saturday deadline.
He set a deadline of April 5 in January on a short video platform, finding non-Chinese buyers and facing a ban in the US for national security reasons.
It was scheduled to come into effect that month to comply with laws passed under the Biden administration.
