Source: BBC
President Donald Trump has unveiled a new strategy to impose tariffs on countries he deems to have unfair trade policies toward the U.S. Signing a memo on Thursday, Trump directed officials to develop country-specific tariffs based on factors such as existing trade balances, exchange rates, and foreign tariff rates.
The move, part of Trump’s broader effort to boost U.S. manufacturing, could impact trade relationships with key partners including the European Union, India, Vietnam, and Thailand. Trump emphasized his commitment to "reciprocal trade," stating that if other nations impose higher tariffs on U.S. exports, the U.S. will match those rates.
Commerce Secretary nominee Howard Lutnick is expected to deliver a detailed plan by April 1. Meanwhile, global leaders, including Indian Prime Minister Narendra Modi, have signaled a willingness to adjust tariffs, but the EU has warned it will protect its interests.
The policy follows recent tariff hikes, including a 25% tax on imported steel and aluminum and increased duties on Chinese goods. Economists remain divided on the potential impact, with some warning of higher costs for businesses and consumers. A recent poll found that only 24% of Americans believe tariffs will benefit the economy.
While Wall Street showed cautious optimism after the announcement, uncertainty looms over how trading partners will respond, raising the risk of escalating trade tensions.
