US President Donald Trump says he will announce "reciprocal tariffs" next week

Addressing a press briefing with Japanese Prime Minister Shigeru Ishiba on Friday, Trump said, "I'll be announcing that next week, reciprocal trade, so that we're treated evenly with other countries." He said, "We don't want any more, any less."

Previously, Trump had threatened to slap 10 per cent or 20 per cent universal tariff and asked his administration with reviewing that possibility as part of a broader trade review due by April 1.

Trump, who announced that the tariffs would be applicable to every nation, added that the announcement would likely be made on "Monday or Tuesday," Politico reported.

He said, "I think that's the only fair way to do it that way nobody's hurt." Donald Trump said, "They charge us, we charge them. It's the same thing, and I seem to be going in that line as opposed to a flat fee tariff."

In many cases, US has lower tariffs than other nations for the same product, although Trump did not mention whether there would be exclusions ot the new round of tariffs. US President often speaks about high tariffs imposed by foreign governments on cars, where the US duty is only 2.5 per cent.

During his presidential campaign, Trump had announced he would work with Congress to pass the Reciprocal Trade Act that would give him the authority to incrase the tariff on a particular foreign good to the level imposed by that nation.

In a campaign video, he said, "Under the Trump Reciprocal Trade Act, other countries will have two choices -- they'll get rid of their tariffs on us, or they will pay us hundreds of billions of dollars, and the United States will make an absolute FORTUNE."

He further said, "If India, China, or any other country hits us with a 100 or 200 percent tariff on American-made goods, we will hit them with the same exact tariff. In other words, 100 percent is 100 percent. If they charge us we charge them -- an eye for an eye, a tariff for a tariff, same exact amount."

Currently, exporters in nearly every nation around the world face the same tariffs on their exports to US, although the individual US tariff rates differ based on the product. Tariff rates for products like car are low while tariff rates for clothing and shoes are generally high, according to Politico report.

Under Trump's "reciprocal tariff" approach, thousands of products in the US tariff code could have as many different tariff levels as there are many nations in the world. The decision would vastly raise the complexity of collecting tariffs on goods, Politico reported.

Earlier in January, a group of Republicans introduced the Reciprocal Trade Act in the House. If Trump enforces a reciprocal tariff system, it would be another power grab from Congress and could spark legal challenges from companies affected by the decision. (ANI)