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By Khaleda Rahman and Daniel Orton
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President Donald Trump announced "reciprocal" tariffs in an early morning post on Truth Social then rolled out his plan on Thursday afternoon in the Oval Office.
"THREE GREAT WEEKS, PERHAPS THE BEST EVER, BUT TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!! MAKE AMERICA GREAT AGAIN!!!" the president wrote in the post.
Trump did not identify in the post which countries would be affected but previously said that his plan would impact "every country" that imposes tariffs on the U.S.
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"I've decided for purposes of fairness that I will charge a reciprocal tariff," Trump said Thursday in the Oval Office at the proclamation signing. "It's fair to all. No other country can complain."
Why It Matters
The move would fulfill Trump's campaign promise to impose tariffs on imports to match those that trading partners impose on American exports.
Trump has argued that raising taxes on most imported goods will level the playing field for the United States and create jobs, but a drastic hike in tariffs could lead to countries retaliating with import taxes of their own and a widening trade war.
Economists have warned that tariffs risk raising inflation and that the burden could ultimately be shouldered by American consumers.
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What Are Reciprocal Tariffs?
Tariffs are taxes imposed by a county on imports, usually charged as a percentage of the price a buyer pays a foreign seller. It is importers—companies in the U.S.—that pay tariffs, and the money goes to the U.S. Treasury.
Those companies typically pass their higher costs to customers by hiking prices. However, tariffs also hurt the exporting countries by making their products costlier and harder to sell abroad.
Reciprocal tariffs would mean the U.S. imposes the same taxes on imported goods from a country that the country imposes on their imports from the U.S. Essentially, it is imposing tariffs in a tit-for-tat manner.
But countries often charge different tariffs on different types of goods, complicating matters.
Trump's proclamation designates value-added taxes—commonly used in the European Union and similar to sales taxes—as a trade barrier to be factored into reciprocal tariff calculations, according to a senior White House official who spoke on condition of anonymity to preview the details during a call with reporters.
What To Know
Trump said Sunday that he planned to impose reciprocal tariffs on "every country" that imposes them on the U.S.
"Very simply, if they charge us, we charge them," he said.
Trump has already announced tariffs on Canada, Mexico and China—major trading partners of the U.S.
He agreed to pause the 25 percent tariffs on Canada and Mexico for 30 days after Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum agreed to increase border enforcement efforts in response to Trump's demand that they crack down on immigration and drug trafficking.
However, the 10 percent tariff on Chinese products went into effect on February 4.
Trump also enacted a 25 percent tariff on steel and aluminum imports on Monday.
What People Are Saying
President Donald Trump, to reporters on Wednesday: "We'll be signing reciprocal tariffs. The world has taken advantage of the United States for many years. They've changed us massive tariffs that we haven't charged them."
White House press secretary Karoline Leavitt, to reporters during a Wednesday briefing: "It's very simple logic as to why the president wants to impose reciprocal tariffs. It's the golden rule, which we all learned when we were growing up in school: Treat others the way you want to be treated.
"And far too many nations around this world have been ripping off the United States of America for far too long, and that's why the president believes this will be a great policy that will benefit American workers and improve our national security."
Economist Stephen Roach, in a recent interview: "From [Trump's] point of view, tariffs are a tax on foreign countries and he wants to capture that tax and bring it back home and use it to fund his MAGA agenda.
"What that fails to appreciate it is that tariffs are paid at the port of embarkation by American companies who do the importing. It's a cost increase on us and the idea that that lowers prices, creates jobs and opens up great new opportunities is something that a politician might argue but there's no credible economist that I know that believes that."
What Happens Next
Trump is meeting with Indian Prime Minister Narendra Modi shortly after 4 p.m.
Update: 2/13/25, 2:08 p.m. ET: This story is updated with additional information.
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