Trump Set to Implement 'Reciprocal Tariffs' Order
WASHINGTON, D.C. - President Donald Trump announced plans to sign an executive order imposing tariffs at rates comparable to those charged by other countries on U.S. imports.
"TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!!" Trump tweeted on Truth Social. "MAKE AMERICA GREAT AGAIN!!!"
The potential for a significant tariff increase could have a substantial impact on the global economy, potentially slowing growth and exacerbating inflation. While Trump contends that these tariffs will create domestic manufacturing jobs, economists generally believe they would effectively increase taxes on U.S. consumers, further contributing to inflationary pressures.
In recent weeks, Trump has taken a confrontational approach with several U.S. trading partners, imposing tariffs and inviting retaliatory import taxes that could escalate into a trade war.
He has levied a 10% tariff on Chinese imports due to the country's role in producing fentanyl. Tariffs on Canada and Mexico, America's top trading partners, are also scheduled to take effect in March if not suspended for an additional 30 days.
Additionally, Trump has lifted exemptions on steel and aluminum tariffs imposed in 2018. He has also discussed potential tariffs on computer chips and pharmaceutical drugs.
The European Union, Canada, and Mexico have prepared countermeasures to impose economic sanctions on the United States in response to Trump's actions. China has already retaliated with tariffs on U.S. energy, agricultural machinery, and large-engine automobiles, as well as launching an antitrust investigation into Google.
Trump has not clarified the definition of "reciprocal" or whether his order would include only matching tariffs or encompass other foreign taxes that he deems barriers to U.S. exports.