Trump may slap reciprocal tariffs on as many as 25 countries on April 2 - Barclays

Investing.com - U.S. President Donald Trump is likely to implement potential reciprocal tariffs on as many as 25 countries at a much-anticipated announcement next week, according to analysts at Barclays (LON:BARC).

Recent media reports have suggested that Trump will roll out more targeted levies than initially expected at the event, aiming at about 15 countries that the White House believes have a trade imbalance with the U.S.

Trump is also expected to slap tariffs on the automotive, pharmaceutical, and semiconductor sectors, although it was unclear whether these will be revealed as part of his so-called "Liberation Day" pronouncement on April 2.

Meanwhile, Trump has hinted that he will seek to limit exceptions to his tariff plans. The president told the conservative television network Newsmax in a Tuesday evening interview that he did not “want to have too many exceptions” to his upcoming levies, which he has previously threatened could match any foreign duties placed on U.S. goods.

“I’ll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people,” Trump said.

In a note to clients, the Barclays analysts led by Michael McLean predicted that Trump could invoke a law granting him emergency economic powers to place tariffs on a group of "15-25 countries."

"The legal authority that the president chooses to use is important because it will drive how quickly the tariffs can be implemented," the analysts said. "Based on his past actions, we think President Trump is unlikely to wait to implement reciprocal tariffs."

Countries with the largest trade deficits in goods with the U.S. and with the highest tariff and non-tariff trade barriers could potentially be the target of the reciprocal levies, the brokerage added.

Economists and business have warned that Trump's duties may drive up inflation and drag down growth in the U.S. and beyond. These fears over the broader impact of Trump’s tariffs have battered global markets recently, although the rout appeared to be easing somewhat this week.

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