US President Donald Trump has indicated that he may grant tariff exemptions to several countries as the deadline for imposing “reciprocal tariffs” approaches. Speaking at the White House on Monday, Trump stated, “I may give a lot of countries breaks, but it’s reciprocal.” His remarks suggest a degree of flexibility in his administration’s approach to trade policies as he prepares to implement new measures on April 2.
Trump also announced that the European Union (EU) has agreed to lower car tariffs to 2.5 per cent as part of an agreement with the US. This development comes amid ongoing trade negotiations between the two economic blocs, reflecting a willingness from both sides to reach a compromise on key trade issues.
“We’ll be announcing some additional tariffs over the next few days, having to do with automobiles, cars, and having also to do a little bit with lumber down the road, lumber and chips,” Trump added. His statement suggests that while some countries may receive exemptions, additional tariffs targeting specific industries remain on the horizon.
In a separate announcement on social media earlier in the day, Trump declared a 25 per cent tariff on any nation purchasing oil or gas from Venezuela. He justified the move by accusing Venezuela of sending “tens of thousands” of criminals to the United States. When asked whether this new tariff would be imposed on top of existing tariffs, Trump confirmed, “yes.”
The administration’s aggressive tariff policies have drawn criticism from economists and investors, who warn that these measures could have a destabilizing effect on the US economy. Analysts have raised concerns about the growing risk of a recession, sometimes dubbed a “Trumpcession,” due to the unpredictability of trade and economic policies.
Earlier this month, Bruce Kasman, JPMorgan’s chief global economist, cautioned that the likelihood of a US recession in 2025 has increased significantly. Speaking to reporters in Singapore, Kasman revealed that the investment bank now estimates a 40 per cent chance of a downturn this year.
As the April 2 deadline nears, businesses and global trading partners will be closely watching the White House’s final decisions, hoping for clarity on how these tariffs will impact international trade and economic stability.
