President Donald Trump announced a plan on Thursday to impose broad reciprocal tariffs on U.S. trade partners.
Reciprocal tariffs are import taxes imposed by the U.S. government on foreign goods. President Trump said they would be set at the same level as the tariffs that other countries apply to American exports.
"It is fair to all, no other Country can complain and, in some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us," the president said. "There are no Tariffs if you manufacture or build your product in the United States."
RELATED STORY | Trump places 25% tariffs on steel and aluminum imports to the US
Administration officials have been tasked with creating a report for Trump on which countries should be targeted with tariffs and the rates to apply. The president is expected to receive the report by April 1 and announce his decision shortly after.
"By making trade more reciprocal and balanced, we can reduce the trade deficit; grow the United States economy; and improve our trade relationships with trading partners to the benefit of American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses," the memo Trump signed says.
Economists and industry experts have warned that the cost of tariffs could be passed on to American consumers.
"While we support the president’s efforts to reduce trade barriers and imbalances, this scale of undertaking is massive and will be extremely disruptive to our supply chains," said National Retail Federation Executive Vice President of Government Relations David French. "It will likely result in higher prices for hardworking American families and will erode household spending power. We encourage the president to seek coordination and collaboration with our trading partners and bring stability to our supply chains and family budgets."
The Trump administration has repeatedly downplayed those concerns.
RELATED STORY | What are tariffs and how do they work?
