Trump announces plan for reciprocal tariffs on all US trading partners

President Donald Trump signed a memorandum Thursday for the U.S. to look at implementing “reciprocal tariffs” to match the tax rates other nation’s place on imports of American goods.

“On trade I have decided for purposes of fairness, that I will charge a reciprocal tariff — meaning whatever countries charge the United States of America, we will charge them no more, no less. In other words, they charge us a tax or tariff and we charge them the exact same tax or tariff. Very simple,” Trump said from the White House.

The memo orders Trump’s Cabinet members to evaluate custom country-by-country remedies to ensure reciprocal trade relations. The report will be submitted within 180 days to assess the fiscal impact of the tariffs.

Following his news conference, Trump discussed his plan further on social media.

“I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them — No more, no less!,” he posted on Truth Social. “Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted. In addition, we will make provision for subsidies provided by Countries in order to take Economic advantage of the United States.”

Related: Machinists union: Tariffs on Canadian metals a ‘gut punch’ to workers

While not singling out any nation during his announcement, the plan could be targeting the European Union in response to its value-added tax (VAT), which applies to all products and is viewed by the Trump administration as a nontariff barrier.

“For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff,” Trump posted on Truth Social.

Critics of tariffs say they could raise prices for American consumers. Trump has said he sees tariffs as a tool for leverage in trade negotiations, and for bringing companies and jobs back to the U.S.

While Trump has threatened several nations with tariffs, so far China is the only country to be hit with increased duties. Trump went forward with a 10% tariff on imports from China on Feb. 1.

On Feb. 3, Trump agreed to pause 25% tariffs on Mexico and Canada after leaders of those countries promised to strengthen border security.

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