President Donald Trump is set to announce reciprocal tariffs this Thursday, February 13, keeping his promise to impose tariffs on imports from countries that impose higher tariffs on American products. This action marks a significant escalation in his trade war with economic partners.
In a post, Trump mentioned that he would discuss the tariffs at a press conference from the Oval Office in Washington at 1 PM. This decision comes just before the president's meeting with Indian Prime Minister Narendra Modi, whose country would be affected by the reciprocal tariffs.
The measure could be an initial step in a broader administrative process to establish reciprocal tariffs, involving federal agencies in the assessment and development of new equivalent duties that would impact specific countries or products. Trump has expressed interest in increasing tariffs overall in the United States, considering this plan key to that effort.
Although details have not been provided on how the tariffs would be calculated, whether there would be considerations for other trade barriers or taxes, or when they would take effect, some nations have already reacted to the news. The euro reduced its gains, and the Mexican peso lost ground against the dollar, while safe-haven currencies like the Swiss franc and Japanese yen remained strong.
Despite not offering specifics on the tariffs or their structure, Trump has stated that they would apply to nations with a higher average tariff rate than the United States, with the aim of matching their rates. Although he initially did not consider exceptions for tariffs on steel and aluminum, after a call with Australian Prime Minister Anthony Albanese, the possibility of considering exclusions based on certain favorable circumstances was opened.
The White House has not confirmed when the tariffs will take effect and whether exclusions will be allowed in the program. Trump has taken a firm stance on his decision and has promised to announce more details about the reciprocal tariffs at the press conference scheduled for today.
