President Donald Trump has signed an executive order imposing reciprocal tariffs on countries that place higher duties on American goods. The move, announced Thursday from the Oval Office, aligns with Trump’s long-standing promise to address what he calls unfair trade practices.
“I have decided for purposes of fairness that I will charge a reciprocal tariff,” Trump said. “In other words, they charge us a tax or tariff, and we charge them the exact same tax or tariff. Very simple.”
The tariffs could take effect as soon as April 2, according to Trump’s nominee for Commerce Secretary, Howard Lutnick. The policy is expected to impact trade relationships with several nations, particularly India, Brazil, and Vietnam, which have historically imposed higher import duties on American products.
Meeting with India’s Prime Minister
The announcement came just before Trump’s scheduled meeting with Indian Prime Minister Narendra Modi. India, one of the countries expected to be hit hardest by the new tariffs, could negotiate an agreement to avoid or delay the impact on its exports to the U.S.
Tariffs Stack Up
The reciprocal tariffs add to a series of recent trade measures by the Trump administration, including:
A 10% across-the-board tariff implemented last week.
A 25% tariff on steel and aluminum announced on Feb. 10.
A 25% tariff on Mexican and Canadian imports, delayed until March 1.
Impact on American Consumers
Economists at the Peterson Institute warn that if all tariffs proceed as planned, American households could face an additional $1,200 per year in costs due to rising import prices. Reciprocal tariffs would likely push that number higher.
What’s Next?
Alongside the new tariffs, Trump’s administration is set to review additional measures on cars, pharmaceuticals, and semiconductor chips in the coming weeks. With trade tensions rising, businesses and consumers alike are bracing for potential price increases and supply chain disruptions.
