U.S. President Donald Trump signed an executive order tonight imposing reciprocal tariffs on both allies and rivals, aiming, as he stated, to correct trade imbalances.
Trump said If tariffs or taxes were imposed on the U.S. (on American products), it would impose exactly the same tariffs or taxes (on imports into the U.S.). “It’s that simple,” he said, adding that U.S. allies often “behave worse than our enemies” in trade matters.
Speaking to reporters in the Oval Office, Trump stated that other countries could choose to reduce or eliminate their tariffs. He clarified that a value-added tax (VAT) imposed by some countries would also be treated as a tariff and warned that using third countries to bypass U.S. tariffs would not be allowed.
Referring specifically to the European Union, Donald Trump highlighted its 20% VAT and “other measures” that harm American companies, citing Apple as an example. He also mentioned that U.S. airlines had asked for his support in addressing aviation fees.
When asked if consumers should expect price increases, he replied, “Not necessarily.” However, he immediately acknowledged that prices “could rise somewhat in the short term” but expressed confidence that job growth and lower interest rates would follow.
Commerce Secretary Howard Lutnick stated that each country’s case would be reviewed individually, with the study expected to be completed by April 1.
Trump added that tariffs for many countries would remain at their current levels and warned that “there will be no exceptions.”
A White House official told Reuters that the U.S. hopes to engage in discussions with the affected countries. The official noted that the U.S. President would gladly lower tariffs if other countries reciprocated by doing the same.
