US President Donald Trump said on Monday he would be “very kind” to trading partners when he unveils further tariffs this week, risking global turmoil to address what he says are unfair trade imbalances.

Trump — who has been making unprecedented use of presidential powers since taking office in January — said he could announce as early as Tuesday night exactly what “reciprocal tariffs” will be imposed.

The Republican billionaire insists that reciprocal action is needed because the world’s biggest economy has been “ripped off by every country in the world”, and is promising “Liberation Day” for the United States.

But he told reporters Monday: “We’re going to be very nice, relatively speaking, we’re going to be very kind.”

Critics warn that the strategy risks a global trade war, provoking a chain reaction of retaliation by major trading partners like China, Canada and the European Union.

Already, China, South Korea and Japan have agreed to strengthen free trade between themselves.

But Trump said he was not worried that his action would push allies toward Beijing, adding that a deal on TikTok could also be tied to China tariffs.

White House Press Secretary Karoline Leavitt said the goal on Wednesday would be to announce “country-based tariffs”, although Trump remains committed to imposing separate, sector-specific charges.

The uncertainty has jolted markets with key European and Asian indexes closing lower, although the Dow and broad-based S&P 500 eked out gains.

Market nervousness intensified after Trump said Sunday his tariffs would include “all countries.”

The Wall Street Journal reported that advisers have considered imposing global tariffs of up to 20 per cent, to hit almost all US trading partners. Trump has remained vague, saying his tariffs would be “far more generous” than ones already levied against US products.

‘Economic pain’

Trump’s fixation on tariffs is fanning US recession fears. Goldman Sachs analysts raised their 12-month recession probability from 20pc to 35pc.

This reflects a “lower growth forecast, falling confidence, and statements from White House officials indicating willingness to tolerate economic pain”. Goldman Sachs also lifted its forecast for underlying inflation at the end of 2025.

China and Canada have imposed counter-tariffs on US goods, while the EU unveiled its own measures to start mid-April. Vietnam said it cut import duties on a range of goods including cars, liquefied gas and some agricultural products.

Japan has said it will set up around 1,000 “consultation centres” for businesses hit by US tariffs.

For now, IMF chief Kristalina Georgieva said at a Reuters event Monday that Trump’s tariffs are causing anxiety, although their global economic impact should not be dramatic.

Ryan Sweet of Oxford Economics said to “expect the unexpected”, anticipating that Trump would “take aim at some of the largest offenders.”

Besides reciprocal country tariffs, Trump could unveil additional sector-specific levies on the likes of pharmaceuticals and semiconductors. He earlier announced auto tariffs to take effect Thursday.

Economists have expected the upcoming salvo could target the 15pc of partners that have persistent trade imbalances with the United States, a group that US Treasury Secretary Scott Bessent dubbed a “Dirty 15”.

The United States has some of its biggest goods deficits with China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada and India.

‘Existential moment’

US trade partners are rushing to minimise their exposure, with reports suggesting India might lower some duties.

European Central Bank President Christine Lagarde said Monday that Europe should move towards economic independence, telling France Inter radio that Europe faces an “existential moment.”

Separately, British Prime Minister Keir Starmer spoke with Trump on “productive negotiations” towards a UK-US trade deal, while German Chancellor Olaf Scholz said the EU would respond firmly to Trump but is open to compromise.

It is “entirely possible” for fresh tariffs to be swiftly reduced or put on hold, said Greta Peisch, a former official at the US Trade Representative’s office.

In February, Washington paused steep levies on Mexican and Canadian imports for a month as the North American neighbors pursued negotiations.

UK ‘likely’ to suffer tariffs despite US trade deal hope: PM

Britain is likely to suffer US tariffs despite making “rapid progress” over a trade deal with Washington, Prime Minister Keir Starmer told Sky News.

“We’re working hard on an economic deal, which we’ve made rapid progress on … but look, the likelihood is there will be tariffs,” Starmer said.

Britain has set out to strike a trade deal with the United States since departing the European Union at the start of the decade.

It is thought that the UK government wants to agree some kind of economic deal before Wednesday.

Downing Street has described a potential agreement as an “economic prosperity deal”, indicating it will fall short of a free trade deal ultimately sought by London.

As it stands, the United States is the UK’s single largest country trading partner.

Starmer repeated that he must “act in the national interest”, even if at this stage the Labour government has no intention of engaging in a trade war.

“All options have to remain on the table,” the prime minister added, however.

Business Secretary Jonathan Reynolds voiced confidence that the UK and US would come to some kind of arrangement over tariffs.

“If the US can reach an agreement with anyone, I believe it can with the UK,” he told Times Radio, citing work between the two nations during trade negotiations over recent weeks.

UK media has reported that London may scrap a tax on tech giants to avert US tariffs under Trump and clear a pathway to a trade deal.

Reynolds again hinted that such an agreement could not be ruled out.

However, he told Times Radio a deal over food standards was a “red line” and denied that the issue of “free speech” had come up in negotiations.

In a post Sunday on social media platform X, the State Department’s Bureau of Democracy, Human Rights, and Labor said: “US-UK relations share a mutual respect for human rights and fundamental freedoms.

“However, as Vice President (JD) Vance has said, we are concerned about freedom of expression in the United Kingdom.”

It was referring to the case of a pro-life campaigner, who is before the courts for breaching a “buffer zone” outside an abortion clinic in Bournemouth, southern England.

EU has ‘strong plan’ to retaliate to US tariffs if ‘necessary’: von der Leyen

EU chief Ursula von der Leyen said the bloc still hopes for a “negotiated solution” to US tariffs looming this week, but that “all instruments are on the table” to hit back if necessary.

“We are open to negotiations,” the European Commission chief told a European Parliament session, “But we have a strong plan to retaliate if necessary.”

“We will assess tomorrow’s announcements carefully to calibrate our response,” said von der Leyen, adding she had been consulting with EU leaders on the “next steps.”

The commission leads the 27-country bloc’s trade policy and has been in charge of discussions with the United States to avoid a trade war.

“Europe has not started this confrontation,” said von der Leyen. “Our objective is a negotiated solution. But of course, if need be, we will protect our interests, our people and our companies.”

Europe will respond with “unity and determination”, she promised.

The bloc’s producers were also affected by a 25pc US tariff on steel and aluminium from around the world — to which Brussels has already promised countermeasures to begin in mid-April.

Taiwan draws up plans to counter US tariffs

Meanwhile, Taiwan has drawn up plans to help local industries hit by possible US tariffs, the island’s economic minister said.

Taiwan’s trade surplus with the United States is the seventh highest of any country, reaching US$73.9 billion in 2024.

“Our countermeasures have been assessed and analysed, for example, how we would respond to a 10pc or how we would respond to a 25pc tariff,” Minister of Economic Affairs Kuo Jyh-huei told reporters.

“All scenarios have been analysed and evaluated to identify suitable responses and determine how best to assist domestic industries in managing the impact,” he said without elaborating.

Kuo added that a plan would be announced on Thursday after Trump revealed who would be targeted by the tariffs.

Taiwan — a powerhouse in semiconductor chip manufacturing — has pledged to increase investment in the United States in a bid to head off tariffs.

Trump has accused the island of stealing the US chip industry and recently threatened to impose tariffs of up to 100pc on semiconductor imports from there.

Taiwan hopes chipmaking titan TSMC’s recently announced plan to invest $100bn in the United States will help it avoid penalties on the sector, which is a major driver of the island’s economy.

Japan PM vows to support businesses hit by US tariffs

Japan will set up around 1,000 “consultation centres” for businesses hit by US tariffs, Prime Minister Shigeru Ishiba said as he vowed to keep pushing to secure an exemption from the levies.

Tokyo is one of Washington’s closest economic and strategic allies, with its firms the biggest investors in the United States and around one in 10 Japanese jobs tied to the auto sector.

Ishiba was tight-lipped about imposing retaliatory tariffs on US imports but said he will discuss “details on responsive measures” with his ruling coalition.

For now, aside from opening the 1,000 consultation decks, he said “we will do everything we can” to help small and mid-sized businesses procure funds after the US tariffs are activated.

“Japan is the biggest investor for the United States. With this in mind, we will continue to strongly call for Japan’s exemption,” he told a news conference.

“If it’s deemed necessary for me to pay a visit to the (United States) myself, then I won’t hesitate to do so.”

On Friday, the prime minister said Trump’s views on tariffs were “difficult to understand” after the 25pc duties on cars and parts were announced.

“What President Trump is saying is that there are both friends and foes and friends can be more difficult. This is very difficult to understand,” Ishiba said during a legislative committee session.