President Donald Trump announced sweeping “reciprocal tariffs” on Thursday, targeting both allies and rivals in a sharp escalation of global trade disputes.
Standing in the Oval Office, Trump justified the move by accusing allies of being “worse than our enemies” when it comes to trade policies.
The new tariffs will be calculated based on each trading partner’s existing duties and non-tariff barriers, including value-added taxes (VAT).
“Major exporting nations attack our markets with punishing tariffs and even more punishing non-tariff barriers,” said Trump trade advisor Peter Navarro, singling out the European Union.
A White House official, speaking anonymously, said the U.S. will prioritize countries with the largest trade deficits and “most egregious issues.”
“This will take weeks, maybe a few months, but not much longer,” the official added, hinting at swift implementation.
Trump acknowledged that the tariffs could temporarily raise prices but insisted they would ultimately benefit the economy.
Since taking office, Trump has imposed multiple tariffs, arguing they address unfair trade practices and generate revenue for the U.S. economy.
The president has often framed tariffs as a tool to pressure foreign governments into trade concessions and correct economic imbalances.
With Thursday’s order, the U.S. Trade Representative and Commerce Department will draft country-specific tariff measures.
The announcement came just before Trump’s meeting with Indian Prime Minister Narendra Modi, as analysts warned that India and Thailand could be among the hardest hit.
Nations like South Korea, which have existing trade agreements with Washington, may face fewer repercussions from the policy shift.