President Donald Trump announced plans on Friday to impose reciprocal tariffs on various countries as part of his ongoing strategy to reshape global trade in favor of the United States.
The formal announcement is expected by Monday or Tuesday.
Speaking during a meeting with visiting Japanese Prime Minister Shigeru Ishiba, Trump emphasized the importance of fair trade practices. "We don’t want any more, any less," he stated, adding that the move would align tariffs imposed on American imports with those faced by U.S. exports in global markets.
Trump did not specify which countries would be targeted but hinted that the effort could extend to solving U.S. budget challenges. Reports suggest auto tariffs remain under consideration, particularly addressing longstanding grievances over the European Union's 10 percent tariff on U.S. car imports compared to the United States' 2.5 percent rate.
The president also highlighted discrepancies in tariff rates between the U.S. and other nations, including India, Brazil, and Vietnam. According to World Trade Organization data, the U.S. trade-weighted average tariff stands at 2.2 percent, significantly lower than India's 12 percent, Brazil's 6.7 percent, and the EU's 2.7 percent.
Trump's tariff strategy aligns with efforts to fund extensions of his 2017 tax cuts, which analysts predict could add trillions to the U.S. debt. Increased tariffs are seen as a measure to offset part of the cost, though they currently contribute only about 2 percent of annual federal revenue.
Wall Street reacted negatively to the tariff announcement, with stock losses extending on Friday. Consumer sentiment hit a seven-month low in February amid inflation fears tied to potential tariff hikes.
On Saturday, Trump announced a 25 percent tariff on Canada and Mexico but postponed enforcement after investor concerns. Both countries agreed to strengthen border enforcement measures, a key priority for the Trump administration.
The administration's tax and spending package, expected to be unveiled this weekend, faces challenges in Congress, where Republicans hold narrow majorities. The president plans to meet Senate Republicans on Friday and attend the Super Bowl with House Speaker Mike Johnson on Sunday.
U.S. Trade Representative nominee Jamieson Greer, during his confirmation hearing, highlighted the importance of reducing trade barriers to ensure continued access to the U.S. market. "If they want to enjoy continued market access to the United States, we need to have better reciprocity," Greer said.
As Trump prepares to make a formal announcement, global trade relationships face potential upheaval, with U.S. trading partners likely bracing for a wave of tariff changes.
The formal announcement is expected by Monday or Tuesday.
Speaking during a meeting with visiting Japanese Prime Minister Shigeru Ishiba, Trump emphasized the importance of fair trade practices. "We don’t want any more, any less," he stated, adding that the move would align tariffs imposed on American imports with those faced by U.S. exports in global markets.
Trump did not specify which countries would be targeted but hinted that the effort could extend to solving U.S. budget challenges. Reports suggest auto tariffs remain under consideration, particularly addressing longstanding grievances over the European Union's 10 percent tariff on U.S. car imports compared to the United States' 2.5 percent rate.
The president also highlighted discrepancies in tariff rates between the U.S. and other nations, including India, Brazil, and Vietnam. According to World Trade Organization data, the U.S. trade-weighted average tariff stands at 2.2 percent, significantly lower than India's 12 percent, Brazil's 6.7 percent, and the EU's 2.7 percent.
Trump's tariff strategy aligns with efforts to fund extensions of his 2017 tax cuts, which analysts predict could add trillions to the U.S. debt. Increased tariffs are seen as a measure to offset part of the cost, though they currently contribute only about 2 percent of annual federal revenue.
Wall Street reacted negatively to the tariff announcement, with stock losses extending on Friday. Consumer sentiment hit a seven-month low in February amid inflation fears tied to potential tariff hikes.
On Saturday, Trump announced a 25 percent tariff on Canada and Mexico but postponed enforcement after investor concerns. Both countries agreed to strengthen border enforcement measures, a key priority for the Trump administration.
The administration's tax and spending package, expected to be unveiled this weekend, faces challenges in Congress, where Republicans hold narrow majorities. The president plans to meet Senate Republicans on Friday and attend the Super Bowl with House Speaker Mike Johnson on Sunday.
U.S. Trade Representative nominee Jamieson Greer, during his confirmation hearing, highlighted the importance of reducing trade barriers to ensure continued access to the U.S. market. "If they want to enjoy continued market access to the United States, we need to have better reciprocity," Greer said.
As Trump prepares to make a formal announcement, global trade relationships face potential upheaval, with U.S. trading partners likely bracing for a wave of tariff changes.
