Trump greenlights reciprocal tariffs in latest order
President Trump signed a memorandum Thursday that greenlights reciprocal tariffs.
WASHINGTON – President Trump signed a memorandum late last week that greenlights reciprocal tariffs, or the implementation of the same tariffs other countries have on the U.S.
“I’ve decided for purposes of fairness that I will charge a reciprocal tariff,” Trump said in the Oval Office at the proclamation signing, per AP News. “It’s fair to all. No other country can complain.”
The memo calls for Trump’s trade advisors to come up with formal measures “quickly,” according to Forbes, who also reported that the Trump administration “will work strenuously to counter non-reciprocal trading arrangements with trading partners by determining the equivalent of a reciprocal tariff with respect to each foreign trading partner.”
According to Reuters, Commerce Secretary Howard Lutnik said these formal measures will be decided by April 1. It’s then when Trump will decide how to proceed.
The U.S.’ weighted average tariff across all imports was 1.5% in 2022. These reciprocal tariffs would push that rate to 4.8%, according to Forbes and the World Bank.
According to Politico, it seems these reciprocal tariffs would replace the universal 10% tariffs Trump suggested while campaigning for president.
“They charge us; we charge them,” he said. “It’s the same thing, and I seem to be going in that line as opposed to a flat fee tariff.”
India is a country that would be heavily impacted by a tariff. India has a 9.5% average tariff rate on American goods, considerably more than the 3% average rate the U.S. charges India. The rug industry would be greatly impacted by any increase on tariffs from goods made in India.
Twenty countries have free-trade agreements with the U.S., but it’s unclear what effect those agreements will have. Notable for the furniture industry are Mexico and Canada and, to a lesser degree, a host of countries in South America.
News of reciprocal tariffs follow Trump’s implementation of 25% tariffs on aluminum and steel imports Monday.
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