What are reciprocal tariffs? Trump's trade agenda explained
US President Donald Trump ordered his officials earlier this year to develop reciprocal tariffs on imports to the United States, keeping to an "eye for an eye" campaign promise on matters of world 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," Trump told reporters in the Oval Office.
Trump's return to the White House has been marked by several tariff announcements — and numerous backtracking — including an additional 20% levy on imports from China that took effect in March, along with 25% tariffs on goods arriving from neighbors Canada and Mexico that are mostly on hold for now.
Trump also announced tariffs on imports of steel and aluminum, which took effect on March 12.
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Trump has a longstanding belief that the US is being treated unfairly in global trade. He argues that many countries impose higher tariffs on US goods than the US does on theirs, creating an imbalance.
For example, India levies tariffs that are typically between 5% and 20% higher than the US on 87% of imported goods, according to data from Global Trade Alert, an organization which assesses commerce policies.
Trump has said he wants to match the levy on US imports that other countries apply to US products.
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