The Trump administration confirmed plans to impose reciprocal tariffs on trade partners maintaining high trade barriers. The plan, expected to be announced on April 2, targets countries making up a significant part of the US trade volume.
Preparation for Tariff Implementation
According to Treasury Secretary Scott Bessent, the US will impose tariffs on countries with significant barriers against American goods. Each country will receive a tariff number reflecting its barriers against US imports. The measure will also cover aspects like domestic value-added tax and other production requirements.
Discussions and Consequences
The Trump administration emphasized that these measures will be enforced without exceptions for any country. Scott noted that, despite the risk of economic slowdown, there are no signs of a recession. The focus is on transitioning the economy towards a new path with strengthened local production.
Future of US Trade Policy
Preparation for implementing the tariffs is spearheaded by US Trade Representative Jamieson Greer, who intends to incorporate business and trade group feedback into the final tariffs. The tariff implementation may face legal challenges, but the administration is determined to proceed by April 2.
The tariff imposition may shift the direction of US trade policy, with increased focus on the large trade deficit with China, although uncertainties remain and discussions continue.
