President Donald Trump announced plans to introduce reciprocal tariffs, further intensifying the ongoing trade war with the United States’ economic allies.
What Happened: Trump revealed his intentions to implement reciprocal tariffs during a meeting with Japanese Prime Minister Shigeru Ishiba on Friday. The president did not specify the exact measures but indicated that they would impact “everyone.”
Trump stated, “I'll be announcing that next week — on reciprocal trade — so that we're treated evenly with other countries. We don't want any more or any less.”
He also suggested that these reciprocal tariffs could replace the 10-20% universal import duty, a key element of his economic platform during his campaign.
Trump’s administration has previously hinted at using tariffs to counter non-tariff trade barriers imposed by other nations. The president has argued that these measures are necessary to secure a “fair deal” for U.S. consumers.
“I think that’s the only fair way to do it. That way, nobody’s hurt. They charge us. We charge them. It’s the same thing.”
Trump also hinted at the possibility of tariffs targeting the automobile industry, stating, “That’s always on the table, it’s a very big deal. We have to equalize it.”
Why It Matters: Trump has been a long-time advocate for reciprocal tariffs, vowing during his campaign to push for legislation that would enable him to impose the “same exact tariff” on any country that levies a duty on a U.S.-made product.
The President’s call for reciprocal tariffs coincides with discussions about imposing a global tariff, targeting the European Union, and enacting sector-specific sanctions on industries like steel, pharmaceuticals, and oil. His advisors see these measures as strategic bargaining tools to address key issues, including illegal immigration, fentanyl smuggling, and trade imbalances.
This announcement comes on the heels of Trump’s decision to pause tariffs on Canada and Mexico for at least 30 days, following new border security commitments to combat fentanyl trafficking and organized crime.
Meanwhile, the implementation of new tariffs on China-made goods has already begun to impact American shoppers and small businesses, with the elimination of the de minimis exemption leading to unexpected import duty notices from shipping firms. These developments are causing significant disruptions in the retail sector, with customers now being asked to pay additional duties and handling fees before receiving their packages.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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