Washington, D.C. – President Donald Trump teased a new round of sweeping reciprocal tariffs on Thursday, aiming to match the higher rates other nations charge to import American goods. In an all-caps post on Truth Social, Trump declared, “THREE GREAT WEEKS, PERHAPS THE BEST EVER, BUT TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!! MAKE AMERICA GREAT AGAIN!!!”
Reciprocal tariffs have been a key element of Trump’s economic policy, designed to counter what he calls unfair trade practices. Speaking earlier this week, he explained, “Very simply, it’s if they charge us, we charge them.”
White House press secretary Karoline Leavitt reaffirmed Trump’s commitment to the tariffs, stating, “This is something he believes strongly in… Other nations have been ripping off the U.S., and that’s why the president believes this will be a great policy that will benefit American workers and improve our national security.”
The exact details of the tariff plan remain unclear, as previous announcements were delayed. Trump’s economic advisers, Peter Navarro and Kevin Hassett, have attempted to temper expectations, with Hassett revealing that negotiations are still ongoing. Some reports suggest the announcement could be an order to investigate the implementation of tariffs rather than an immediate directive.
The tariffs, part of Trump’s strategy to generate revenue for extending the 2017 tax cuts, could have significant economic implications. Economists warn that the burden will likely fall on American consumers as importers pass higher costs to retailers, resulting in price increases.
Developing countries such as India, Brazil, Vietnam, and others may face the biggest impact due to significant disparities in tariff rates. In 2022, the U.S. charged an average tariff of 3% on Indian imports, while India imposed a 9.5% tariff on U.S. goods, according to the World Bank.
With Trump meeting Indian Prime Minister Narendra Modi on Thursday, a possible agreement could delay or prevent new tariffs on Indian exports. In 2023, trade between the two countries amounted to $129 billion, with India exporting $87 billion in goods to the U.S.
This announcement follows the 10% across-the-board tariff implemented last week, along with additional tariffs on Chinese goods and a 25% levy on steel and aluminum. If Trump moves forward with a 25% tariff on Mexican and Canadian imports, Peterson Institute researchers estimate the total cost of these taxes could increase household expenses by more than $1,200 annually.
Certain goods, including medical-grade gloves, electronic components, and European cars, may see substantial price increases due to the tariffs. Experts suggest that consumers could bear the cost unless manufacturers and retailers absorb some of the financial impact.
Further details on the reciprocal tariffs are expected as Trump continues discussions with global leaders.
