U.S. President Donald Trump has announced a new trade policy that will impose “reciprocal tariffs” on imports, matching the duties that other nations levy on American goods.
In a social media post, Trump declared,
“On trade, I have decided, for purposes of fairness, that I will charge a RECIPROCAL Tariff—meaning, whatever countries charge the United States of America, we will charge them—no more, no less!”
The move signals a departure from the idea of universal tariffs, where all imports would face the same tax. Instead, the administration plans to tailor tariffs to mirror the import duties of trade partners. For instance, if a country taxes American-made cars at 10%, the U.S. will impose the same 10% tariff on vehicles from that nation.
Trump also outlined plans to consider other trade barriers, including value-added taxes (VAT), subsidies, and non-monetary restrictions, such as regulatory hurdles that prevent U.S. businesses from operating abroad.
“This system will immediately bring fairness and prosperity back into the previously complex and unfair system of trade,”
The President signed a memorandum on February 13, instructing his trade and economic advisors to calculate new tariff levels for all trading partners within 180 days. He emphasised that countries wishing to avoid U.S. tariffs could simply reduce or remove their own trade restrictions.
The European Union swiftly condemned the policy, calling it “unjustified” and vowing to retaliate against any trade barriers. India and Japan have begun discussions with U.S. officials to assess the implications for their economies.
The White House has defended the strategy as a measure to protect American industries and reduce trade deficits. Trump has argued that the policy will encourage foreign companies to manufacture within the U.S., eliminating tariffs altogether for businesses that relocate production.
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