President Donald Trump signed an executive order Thursday to impose reciprocal tariffs on U.S. trading partners, aiming to match the levies foreign nations place on American goods. However, the tariffs won’t take effect immediately.
“I’ve decided for purposes of fairness that I will charge a reciprocal tariff,” Trump stated, asserting that no country could object to the move. The order instructs the Commerce Department and U.S. Trade Representative to provide recommendations by April 1 on how to align U.S. tariffs with those imposed on American exports.
Howard Lutnick, Trump's nominee for Commerce Secretary, confirmed that tariff recommendations would be ready for review by the deadline. The administration argues the policy will level the playing field for U.S. manufacturers, but critics warn it could raise prices for American consumers and businesses.
Trump singled out BRICS nations—Brazil, Russia, India, China, and South Africa—suggesting they could face 100% tariffs. “If any trading gets through, it'll be 100% tariff, at least,” he warned.
Markets reacted positively to the delay, as it provides time for negotiations. Trump also met with Indian Prime Minister Narendra Modi, stating he anticipates “wonderful trade deals” and confirming India’s plans to purchase U.S. oil.
The move is part of Trump's broader effort to push for trade fairness, though economists caution that tariffs could backfire, leading to higher costs for American businesses and potential retaliation from trading partners.