WASHINGTON – U.S. President Donald Trump is set to unveil a new wave of reciprocal tariffs on Thursday afternoon, targeting countries that impose duties on U.S. imports. However, details of the plan remain unclear.
“Today is the big one: reciprocal tariffs,” Trump wrote on his social media platform, later announcing a 1 p.m. (1800 GMT) press conference to disclose further details. The announcement comes just hours before Indian Prime Minister Narendra Modi’s White House visit, with India being one of the highest tariff-imposing U.S. trade partners.
Since taking office on January 20, 2025, Trump has already introduced a series of tariffs, including duties on steel and aluminum imports starting March 12, 10% tariffs on Chinese goods, and a 30-day delay on tariffs for Canada and Mexico. His latest move has raised concerns over rising inflation and the potential escalation of a global trade war.
Challenges in Implementing Reciprocal Tariffs
Trump’s trade advisers have been finalizing the structure of the tariffs, which he has vowed to apply to every nation imposing duties on U.S. goods. However, experts argue that implementing reciprocal tariffs is complex and could present logistical challenges.
One approach under consideration is a flat 10% or 20% tariff, which would be easier to implement. However, a more intricate plan that matches U.S. tariffs to each country’s specific rates could create a bureaucratic nightmare, according to William Reinsch, a senior fellow at the Center for Strategic and International Studies.
Damon Pike, a trade expert at BDO International, noted that coordinating reciprocal tariffs across 186 World Customs Organization members could require an artificial intelligence-level system, given the 5,000 product classifications used internationally.
Trump could use various legal avenues, such as Section 122 of the Trade Act of 1974, which allows a temporary 15% tariff, or Section 338 of the Tariff Act of 1930, which targets discriminatory trade policies but has never been used before. He may also invoke the International Emergency Economic Powers Act (IEEPA), previously used to justify tariffs on China and proposed duties on Canada and Mexico.
Economic and Consumer Impact
Experts warn that imposing reciprocal tariffs could lead to unintended consequences, including higher consumer prices and market disruptions.
“For example, if Colombia has a high tariff on coffee to protect its industry, we would have to match it with a U.S. tariff on Colombian coffee, even though we don’t produce coffee. The only ones impacted would be U.S. consumers,” Reinsch explained.
While Trump’s aggressive trade strategy aims to protect American businesses, critics argue that the approach could cede control of the U.S. tariff system to foreign nations, potentially triggering counterproductive results in global commerce. With global markets on edge, all eyes are on Trump’s afternoon press conference, where he is expected to outline the specifics of his tariff strategy and its implications for U.S. trade policy.