Trump Signs Reciprocal Tariffs Plan, Launches Country-by-Country Negotiations
President Donald Trump has signed an executive order introducing reciprocal tariffs on "both friend and foe" nations. However, their implementation has been deferred pending negotiations with affected countries.
India will be the first nation to face discussions, with Prime Minister Narendra Modi scheduled to meet with Trump later today. Modi may seek to leverage issues such as energy to mitigate the tariff impact on his nation.
Trump emphasized the absence of exemptions or waivers, stating that countries charging tariffs against the United States would be met with similar measures. He claimed that India imposes more tariffs than any other nation.
"We will charge a reciprocal tariff, meaning whatever countries charge the United States of America, we will charge them," Trump said.
He accused America's trading partners of charging "vastly more" in almost all cases. Trump and Commerce Secretary nominee Howard Lutnick affirmed that the forthcoming duties would be tailored to each country.
According to Lutnick, country studies could be completed by April 1, allowing for the potential implementation of duties as early as April 2.
The move follows the president's recent imposition of tariffs on steel (25%) and aluminum (10%).
Further details of the Thursday order remain pending, but its implementation could impact a broad spectrum of nations globally.
Nations such as India, Brazil, and South Korea have historically imposed higher tariffs on various goods than the United States. Trump and his advisors have also suggested that non-tariff barriers could be subject to reciprocity.
Trump has also indicated that the new duties will include value-added taxes. This focus could pose a significant impediment in relations with the European Union.
The executive order fulfills Trump's long-standing aim of using tariffs to extract reciprocity from America's trading partners. He has pledged to use his powers to equalize uneven trade balances.