In a bold move, U.S. President Donald Trump has signed a new plan aiming to level the playing field in international trade by imposing \"reciprocal tariffs\" on foreign trading partners. 🏛️
\"I have decided for purposes of fairness, that I will charge a reciprocal tariff – meaning whatever countries charge the United States of America, we will charge them no more, no less. In other words, they charge us a tax or tariff and we charge them the exact same tax or tariff. Very simple,\" Trump declared at the White House.
This memorandum outlines the \"Fair and Reciprocal Plan,\" which seeks to reduce the large and persistent trade deficit the U.S. faces annually. The administration plans to meticulously assess non-reciprocal trade relationships and apply matching tariffs to ensure a balanced exchange.
However, not everyone is on board. Experts like Gary Clyde Hufbauer from the Peterson Institute argue that Trump's definition of \"reciprocity\"—applying tariffs on a country-by-country basis rather than the traditional overall balance—could lead to increased tensions and economic slowdown. 💼📉
As countries respond with their own countermeasures, the global trade landscape may see significant shifts, highlighting the complexities of international economics in today's interconnected world.
Reference(s):
Trump signs plan to impose 'reciprocal' tariffs on trading partners
cgtn.com
