Trump says he’ll announce reciprocal tariffs on US trading partners on Thursday – The Associated Press
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President Donald Trump rolls out his plan to increase US tariffs to match the tax rates that other countries charge on imports, possibly triggering a broader economic confrontation with allies and rivals alike as he hopes to eliminate trade imbalances.
Taxes on imports could soon go up, as President Donald Trump signed a measure to have tariff rates match what other countries charge. Higher tariffs under current law would be paid by Americans, either directly or in the form of higher prices.
President Donald Trump signs an executive order in the Oval Office of the White House, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)
President Donald Trump speaks to reporters after signing an executive order in the Oval Office of the White House, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)
Commerce Secretary nominee Howard Lutnick listens as President Donald Trump speaks after signing an executive order in the Oval Office of the White House, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)
President Donald Trump speaks to reporters in the Oval Office of the White House, where he signed an executive order, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)
President Donald Trump speaks to reporters after signing an executive order in the Oval Office of the White House, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)
President Donald Trump speaks to reporters in the Oval Office of the White House, where he signed an executive order, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)
President Donald Trump listens to a question from a reporter as Commerce Secretary nominee Howard Lutnick watches after Trump signed an executive order in the Oval Office of the White House, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)
President Donald Trump speaks to reporters before signing an executive order as White House national economic council director Kevin Hassett, from left, White House senior counselor for trade and manufacturing Peter Navarro, White House staff secretary Will Scharf and Commerce Secretary nominee Howard Lutnick watch, in the Oval Office of the White House, Thursday, Feb. 13, 2025, in Washington. (AP Photo/Ben Curtis)
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WASHINGTON (AP) — President Donald Trump on Thursday rolled out his plan to increase U.S. tariffs to match the tax rates that other countries charge on imports, possibly triggering a broader economic confrontation with allies and rivals alike as he hopes to eliminate any trade imbalances.
“I’ve decided for purposes of fairness that I will charge a reciprocal tariff,” Trump said in the Oval Office at the proclamation signing. “It’s fair to all. No other country can complain.”
Trump’s Republican administration has insisted that its new tariffs would equalize the ability of U.S. and foreign manufacturers to compete, though under current law these new taxes would likely be paid by American consumers and businesses either directly or in the form of higher prices. The rates to be charged would be studied over the weeks ahead, which could create the potential space to resolve challenges or prolong a degree of suspense and uncertainty.
The politics of tariffs could easily backfire on Trump if his agenda pushes up inflation and grinds down growth, making this a high stakes wager for a president eager to declare his authority over the U.S. economy.
The tariff increases would be customized for each country with the partial goal of starting new trade negotiations. But other nations might also feel the need to respond with their own tariff increases on American goods. As a result, Trump may need to find ways to reassure consumers and businesses to counteract any uncertainty caused by his tariffs.
The United States does have low average tariffs, but Trump’s proclamation as written would seem designed to jack up taxes on imports, rather than pursue fairness as the United States also has regulatory restrictions that limit foreign products, said Scott Lincicome, a trade expert at the Cato Institute, a libertarian think tank.
“It will inevitably mean higher tariffs, and thus higher taxes for American consumers and manufacturers,” he said. Trump’s tariffs plan “reflects a fundamental misunderstanding of how the global economy works.”
Trump’s proclamation identifies value-added taxes — which are similar to sales taxes and common in the European Union — as a trade barrier to be included in any reciprocal tariff calculations. Other nations’ tariff rates, subsidies to industries, regulations and possible undervaluing of currencies would be among the factors the Trump administration would use to assess tariffs.
A senior White House official, who insisted on anonymity to preview the details on a call with reporters, said that the expected tariff revenues would separately help to balance the expe
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