Posted on 02/13/25
| News Source: CNBC
President Donald Trump on Thursday signed a presidential memorandum laying out his plan to impose “reciprocal tariffs” on foreign nations.
“They charge us a tax or tariff and we charge them,” Trump said in a press event in Oval Office.
The president said that under the plan, the U.S. will treat other countries’ non-tariff policies as unfair fair trade practices that warrant tariffs in response.
Those include value-added taxes, or VATs, and other practices that the office of the U.S. trade representative deems to be unfair trade limitations.
“We want a level playing field,” Trump said.
He also suggested that additional tariffs, including on auto imports, are on the way, Reuters reported.
The reciprocal tariffs will not go into effect immediately. Trump said that Howard Lutnick, his nominee for Commerce secretary, will lead the studies to determine the appropriate tariff levels for each affected country.
Lutnick said in the Oval Office that he expects those studies will be complete by April 1.
The new tariffs will follow duties Trump has already slapped on China, Canada and Mexico, as well as on imports of steel and aluminum. Trump’s tariffs on Canada and Mexico are currently on pause after both countries pledged to crack down on illegal crossings and drug trafficking at their respective borders with the U.S.
As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports. But he also advocated for Congress to pass what he called the “Trump Reciprocal Trade Act,” which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.
Since taking office, Trump has signaled his plans to impose tariffs on the European Union. He has highlighted U.S. trade deficits with European partners and complained that EU nations do not purchase enough American cars or farm equipment.
EU leaders have vowed to retaliate against new U.S. tariffs, while warning that Trump’s actions risk sparking a widespread trade war that ultimately hurts everyone.
The new reciprocal tariffs were expected to come before Indian Prime Minister Narendra Modi’s visit with Trump at the White House on Thursday afternoon.