Trump's Tariff Strategy: New Measures on the Horizon

President Donald Trump plans to impose reciprocal tariffs, fulfilling a campaign promise. He informed Republican lawmakers about these plans during a White House budget discussion. The measure aims to match tariffs on American exports and fund tax cuts, but details and affected countries remain unclear.

President Donald Trump is set to introduce reciprocal tariffs, as reported by three sources familiar with the plan. This initiative, in line with his campaign promise, aims to match the tariffs levied on American exports by trading partners. The announcement could come as early as Friday, although specific countries targeted remain unspecified.

The discussion took place in a budget meeting at the White House. While the administration views increased tariffs as a means to help finance the extension of Trump's 2017 tax cuts, raising significant revenue from tariffs poses a challenge due to their limited share of annual revenue.

A previous announcement imposing a 25% tariff on Canada and Mexico was postponed following adverse market reactions. Both countries, pivotal U.S. trading partners, consented to bolster border enforcement, aligning with Trump's priorities. The tariffs news led to Wall Street's expanded losses, showcasing investor concerns about the economic impact.

(With inputs from agencies.)