Trump imposes reciprocal tariffs under new trade order
President Donald Trump has officially signed an executive order to place reciprocal tariffs on U.S. trading partners, which includes provisions for non-monetary policies and defines value-added taxes (VATs) as meeting the criteria for a reciprocal import tax.
The move has sparked concerns about potential economic turmoil and trade conflicts.
Trump has tasked Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio, and Treasury Secretary Scott Bessent to study the tariff issue and submit their findings.
Lutnick stated that the report would be ready by April 14.
The tariffs will not be levied immediately but will be imposed following the report's submission.
According to Trump, the goal is to level the playing field.
"Whatever they charge us, we're charging them. So, it works out very well," Trump told reporters after signing the order.
"If [other countries] drop their tariffs, prices for Americans are coming down. Our production is going up, and our costs are going down. Remember, it’s a two-way street — that’s why it’s called reciprocal," Lutnick added.
The order follows recently announced tariffs on China, Mexico, and Canada, as markets grapple with the economic implications of an extended trade war and macroeconomic uncertainty.
The tariffs on Mexico and Canada were ordered but have been paused until March 12.
Trump has also hinted at potential new tariffs on computer chips and pharmaceutical products.
Economists, however, warn that these tariffs could lead to reduced global growth and heightened inflation.
Critics argue that the tariffs would amount to a tax hike for American consumers, exacerbating inflationary trends.
Historically, cryptocurrency and stock markets tend to drop sharply following news or rumors of a trade war, as investors flee risk-on assets for safer investments like U.S. government securities, but may recover quickly.
President Trump’s initial announcement of tariffs against China, Mexico, and Canada caused the price of Bitcoin (CRYPTO:BTC) to fall below $100,000 and led to more than $2.2 billion in Ether liquidations within 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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