Investing.com - President Trump on Thursday signed an executive order on a slew of reciprocal tariffs on U.S. trading partners to match the levies and rates imposed by other nations on imported U.S. goods, though stopped short of imposing them immediately.
“I’ve decided for purposes of fairness that I will charge a reciprocal tariff,” Trump said. "It’s fair to all. No other country can complain."
The order directs the Commerce Department and U.S. trade representative to furnish reports on how to bring U.S. tariff rates to match those imposed by other nations on imported U.S. goods.
Howard Lutnick, Trump's nominee for Commerce Secretary, said they would have recommendations on reciprocal tariffs for the President by April 1.
Trump's Republican administration has argued that the new tariffs aim to create a level playing field for U.S. manufacturers against foreign competitors. However, there are worries that the tariffs are likely to be shouldered by American consumers and businesses, either through direct costs or higher prices.
Some nations could face tougher tariffs. Trump warned the BRICS nations could face 100% tariffs. "If any trading gets through, it'll be 100% tariff, at least," he said.
While Trump had teed up the news that tariffs would be announced today, some feared the measures could go into effect immediately. Stocks rallied as the delay could provide time for countries to negotiate with the U.S. on tariffs.
The fresh avenue for reciprocal tariffs come just as Trump met with his Indian counterpart Narendra Modi. Trump reportedly said that he expects "wonderful trade deals" with India and added that the latter would be buying U.S. oil.