Trump announces new reciprocal tariffs ahead of meeting with PM Modi
US President Donald Trump announce his plan to impose reciprocal tariffs on trade partners, but they will not take effect immediately.
US President Donald Trump on Thursday announced a plan to enact reciprocal tariffs, though the duties will not take effect immediately, the latest example of brinkmanship from the president against US trading partners.
"I’ve decided for purposes of fairness that I will charge a reciprocal tariff," Trump said in the Oval Office at the proclamation signing. “It’s fair to all. No other country can complain.”
Trump's Republican administration has insisted that its new tariffs would equalize the ability of US and foreign manufacturers to compete, though under current law these new taxes would likely be paid by American consumers and businesses either directly or in the form of higher prices.
Earlier on Thursday, Trump on his social media said he would reveal his long-awaited proposal. Yet the tariffs the president announced would not take effect for weeks, if not months, according to people familiar with the matter. The president is expected to direct the US Trade Representative to take over the process on reciprocal tariffs, the people said, requesting anonymity to discuss the information before it is public.
“THREE GREAT WEEKS, PERHAPS THE BEST EVER, BUT TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!! MAKE AMERICA GREAT AGAIN!!!” he wrote. In a subsequent post, Trump said he would speak about the tariffs at a news conference at 1 p.m., Washington time, from the Oval Office.
The announcement came just ahead of Trump’s meeting with Prime Minister Narendra Modi, the leader of a nation that is poised to be hit hard by reciprocal tariffs.
Trump has gravitated toward the reciprocal tariff plan as a key part of his push to raise US levies overall. Trump has said it would apply to nations who generally have a higher average tariff rate than the US, which would raise its own tariff to match them.
“If they charge us, we charge them,” he said Sunday while speaking with reporters and confirming he planned to announce this week.
Negotiation tactics
The White House has not shared how the reciprocal tariffs will work, including what would be used to calculate the tariff rate and whether other trade barriers or taxes would be considered. It hasn’t specified whether it would pick a single average for each country or differentiate by sector or product. It’s also not clear whether the program would allow for exclusions.
The long lead time raises speculation as to whether Trump will use the specter of sweeping new duties as leverage or a starting point for negotiations with world leaders.