US President Donald Trump has signed an executive order enforcing reciprocal tariffs, potentially impacting international trade. The article examines the key aspects of the order and its implications for the economy.
President's New Order
US President Donald Trump officially signed an executive order to impose reciprocal tariffs on the country’s trading partners. The order includes provisions for non-monetary policies and defines value-added taxes (VAT) as meeting the criteria for a reciprocal import tax.
Study and Report
To study the issue and propose solutions, President Trump appointed Secretary of Commerce Howard Lutnick, Secretary of State Marco Rubio, and Secretary of the Treasury Scott Bessent. Tariffs will not be levied immediately and will be imposed following the submission of the report, which Lutnick indicated would be ready by April 1.
Economic Impact
This executive order follows tariffs recently announced on China, Mexico, and Canada. Tariffs on Mexico and Canada were ordered but have been paused until March 1, with markets grappling with the economic implications of an extended trade war and macroeconomic uncertainty.
President Trump's new executive order on reciprocal tariffs highlights the complex economic relationships between the US and global trading partners. The upcoming report is expected to provide further insights into the potential outcomes of this decision.
