President Donald Trump’s “Fair and Reciprocal Plan” seeks to match tariffs on domestic goods to the same rates that other nations charge on imports – a move that could have a far-reaching impact on consumers here as well as America’s allies and rivals.
The Trump administration billed this new policy as a way for the United States to correct long-standing imbalances with trade partners, who sometimes apply higher tariffs to American goods than the U.S. does to theirs. In a Truth Social post, he added: “If a country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us.”
President Trump ordered studies on how the U.S. could balance trade with over 200 countries and territories. The White House expects these to be completed by April 1, potentially allowing trade partners to adjust their rates. The Trump administration contends that American consumers and businesses will likely bear the brunt of these new tariffs, either directly or through increased prices, but will lead to an increase in jobs and shrink America’s nearly $1 trillion trade deficit.
Only the 10% tariff on China has taken effect. The tariffs levied against Canada and Mexico are on hold until March, and a broader reciprocal tariff plan could be implemented in April.
