US President Donald Trump has announced a new plan to impose reciprocal tariffs on countries that charge higher duties on American imports, a move that could reshape global trade relations.
Speaking at the Oval Office on Thursday, Trump said the tariffs would be customized for each country to ensure fairness.
“Whatever countries charge the United States, we will charge them,” Trump stated, adding that many US trading partners impose significantly higher tariffs.
The administration will also consider value-added taxes, subsidies, and regulations when determining duties.
While the tariffs are not immediate, they could take effect within weeks as Trump’s trade team assesses the most significant trade imbalances. The White House aims to use the policy as leverage in negotiations to lower global trade barriers.
Economists warn that these tariffs could increase costs for American consumers and businesses. Research from the Peterson Institute suggests that previously proposed tariffs on China, Mexico, and Canada alone could raise household expenses by over $1,200 per year.
Trump’s latest trade measure, part of a broader economic strategy, signals potential tensions with US allies and trading partners, who may retaliate with their own tariffs.