Trump's "Fair Trade" Gambit: Reciprocal Tariffs on the Horizon

President Donald Trump will unveil "reciprocal tariffs" on nations he sees having unfair trade policies against the U.S1. He signed a directive directing his aides to prepare tariffs for each country based on their current tariffs, exchange rates, and trade policies1. Trump is confident that the tariffs will spur investment in the U.S. and increase domestic manufacturing by providing a level playing field13.

These tariffs would have a broad impact, possibly touching developing countries such as India, Brazil, and Vietnam because of prevailing tariff rate disparities3. India and Thailand are likely to be most at risk, according to experts6. The administration will look beyond tariffs to other barriers such as value-added taxes.

Trump's staff has six months to come up with a plan, and a potential proposal by April.  Economists say these tariffs will reduce global economic growth and raise inflation5. There is a chance these tariffs, which Trump asserts will equal the levies other nations put on the U.S., will also cover non-tariff issues