Reciprocal Trade and Tariffs

President Donald Trump signed a Presidential Memorandum on "Reciprocal Trade and Tariffs" on February 13, 2025, introducing the "Fair and Reciprocal Plan" to address trade imbalances with U.S. trading partners. These tariffs aim to match the import duties other countries impose on U.S. goods, following the principle of "an eye for an eye, a tariff for a tariff".

Key aspects of reciprocal tariffs include:

Matching rates: The U.S. will impose tariffs equal to those levied by other countries on American products.

Scope: The policy applies to all trading partners, including strategic competitors like China and allies such as the European Union, Japan, and South Korea.

Implementation process: U.S. federal authorities have 180 days to identify countries imposing higher tariffs than the U.S. and recommend country-specific tariffs.

Timeline: While the full process may take months, some proposals could be ready by April 2, 2025, according to Howard Lutnick, Trump's nominee to lead the U.S. Commerce…