The President of the United States, Donald Trump, announced this Thursday that he would sign reciprocal tariffs on imports from countries that impose higher tariffs on American products. The announcement was made before a meeting with Indian Prime Minister Narendra Modi, and Trump expressed his intention to equalize tariff rates with other countries.
"In almost all cases, they are charging us much more than we are charging them, but those days are over," Trump told reporters. The president mentioned that the tariffs would extend to products such as cars, semiconductors, and pharmaceuticals, although the text of the directive had not yet been provided by the White House.
Trump cited trade barriers in the European Union, including VAT, and pointed to Japan and South Korea as potential targets of this measure. The reciprocal tariffs are expected to mainly impact less developed economies, where tariff rates are higher for American products.
This decision represents an escalation in the trade war initiated by Trump. Previously, the president had already signed an order to impose a 25 percent tariff on steel and aluminum imports from other countries and may consider applying tariff strategies globally in the future.
The new tariffs will be personalized for each country, aiming to offset both the taxes on American goods and non-tariff barriers, such as unfair subsidies, regulations, and unfavorable exchange rates. Trump has expressed his intention to impose reciprocal tariffs in response to the high tariff barriers of India and other countries.
The American president has been firm in his protectionist stance since the beginning of his term, threatening tariffs on different countries. The measure on steel and aluminum imports will come into effect soon, which could have a considerable impact on several nations, including Mexico and Canada.
