USA lays out plan to introduce reciprocal tariffs possibly in April

U.S. President Donald Trump on Thursday signed a document laying out his plan to introduce reciprocal tariffs, in his latest bid to address what he sees as the “unfair” trade practices of other countries, including China, Japan and South Korea.

Trump’s Commerce Secretary nominee Howard Lutnick said the measures could be imposed as early as April 2 after the administration wraps up its examination into trade conditions with each country and the European Union by the day before.

Trump, who signed the memorandum for his Cabinet members in the Oval Office, said, “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.”

“For many years, the U.S. has been treated unfairly by other countries, both friend and foe,” he said. “America has helped many countries throughout the years, at great financial cost. It is now time that these countries remember what we’ve done for them and treat us fairly.”

A White House official said the administration will come up with a report detailing proposed country-by-country remedies within 180 days, first focusing on those that have notable trade surpluses with the United States.

The official said its studies on each trading partner could be completed in a matter of weeks or months, adding that among countries there is “a different mix of how they take advantage” of the United States, with Japan described as having “relatively low tariffs, but high structural barriers.”

In 2024, the United States had the largest trade deficit in goods with China, followed by Mexico, Vietnam, Ireland, Germany, Taiwan, Japan and South Korea, according to official U.S. data.

“It doesn’t matter whether it’s strategic competitors like Communist China or allies like the European Union or Japan or (South) Korea,” said the official, who spoke on condition of anonymity. “Every one of those countries is taking advantage of us in different ways.

“Trump suggested that cars will fall under the scope of U.S. reciprocal tariffs. Among U.S. partners, he particularly took aim at EU member countries, saying that high value-added taxes imposed by them should be viewed as tariffs or trade barriers, making U.S. products less competitive in their markets.

He also complained that Taiwan took the U.S. semiconductor business.”We have to have chips made in this country right now,” he said, calling on foreign manufacturers to build factories in the United States.

The memorandum says the United States will look into “non-reciprocal trade relationships” with all of its trading partners, including any value-added tax and other unfair or extraterritorial taxes imposed by them on U.S. businesses, workers and consumers.

It also says the United States will examine factors such as foreign country policies that cause exchange rates to deviate from their market value, subsidies and regulatory requirements.

The United States has recorded a trade deficit in goods every year since 1975, according to the White House. It claimed that “closed markets abroad reduce U.S. exports and open markets at home result in significant imports, both of which undercut American competitiveness.”

While many countries are bracing for potential dramatic increases in U.S. import taxes that could have a significant impact on their economies and world growth, many mainstream economists are warning consumer prices will be driven higher at home.

During a lengthy exchange with reporters on Thursday, Trump said the tariffs to be rolled out will help create “tremendous amounts of jobs” in the United States. But he admitted that “prices could go up somewhat in the short term.”

Trump first revealed the idea of imposing equivalent tariffs last Friday, when he held a joint press conference with Japanese Prime Minister Shigeru Ishiba at the White House.

Since returning to the presidency for a non-consecutive second term on Jan. 20, Trump has unveiled tariffs on all steel and aluminium imports, due to take effect on March 12, and imposed an additional 10 percent duty on goods from China.

He also initiated plans for hefty tariffs on imports from Canada and Mexico, but their implementation was put on hold for 30 days to allow negotiations with the neighboring countries.