Trump's Reciprocal Tariffs: A New Era in Global Trade?

The U.S. under President Trump is exploring reciprocal tariffs aimed at matching foreign tariffs on American goods, potentially leading to a global trade conflict. The move, targeting nations like China, Japan, and the EU, seeks to reduce trade imbalances. The administration aims to trigger dialogues to negotiate lower tariffs.

In a bold move to address perceived trade imbalances, U.S. President Donald Trump has directed his economic team to plan for reciprocal tariffs on nations taxing American imports. This initiative raises concerns about a potential global trade war.

The president's memo halted short of enforcing new tariffs, opting instead for an extensive examination of duties levied on U.S. goods by trading partners. Focus countries include China, Japan, South Korea, and the EU. Initial reactions saw Wall Street steadied, though concerns over inflation and Federal Reserve interest rates persist.

Commerce Secretary pick Howard Lutnick emphasized that the administration would meticulously evaluate each affected country and complete necessary studies by April 1. Amidst fears of rising consumer prices, Trump insists that reciprocal tariffs aim to level the playing field, potentially prompting strategic international trade negotiations.

(With inputs from agencies.)