US President hit the wires on Thursday, revealing details of his concepts of a plan for reciprocal tariffs against all major trading partners of the US who impose tariffs and also non-tariffs on goods imported from the US. According to President Trump, the US administration will also be considering countries that charge a VAT on foreign goods as a form of tariff. Specific details about the reciprocal tariff proposal remain slim, and Commerce Secretary Howard Lutnick has been tapped to actually flesh out the details moving forward. President Trump also highlighted the need to address "non-monetary tariffs", an economic concept that does not exist.
Key highlights
I have decided to charge a reciprocal tariff.
We'll consider countries that use VAT tax system.
VAT tax will be viewed as a tariff.
We're going to call it a tariff.
They’re charging us vastly more than we charge them.
Provisions will be made for non-monetary tariffs.
Lutnick will come up with numbers equivalent to those limitations and other non-tariff barriers.
Lutnick will be working on reciprocal plan.
Other countries can reduce tariffs or eliminate.
No tariffs if manufacture or build product in the US.
We want to level playing field for all US companies.
Asked treasury, commerce chiefs to work on reciprocity.
Steel and aluminum is over and above this.
Car tariffs will be over and above reciprocal tariffs, and coming shortly.
This will be over and above steel tariffs also cars and pharmaceuticals.
Chips and pharma will also be over and above.
India has more tariffs than nearly any other country.
I expect jobs to go up, prices could go up somewhat short term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD struggles to build on previous week's gains, stays below 1.0500
EUR/USD stays under modest bearish pressure and trades below 1.0500 on Monday. The cautious market mood supports the US Dollar and limits the pair's upside, while trading action remains subdued, with US markets remaining closed on Presidents' Day.
GBP/USD ranges near 1.2600 as US Dollar steadies
GBP/USD fluctuates in a tight channel near 1.2600 in the second half of the day on Monday. Trading volumes are likely to remain thin as financial markets in the US enjoy a log weekend in observance of the Presidents' Day holiday.
Gold clings to modest daily gains near $2,900
Gold regains its traction and trades in positive territory near $2,900 following Friday's sharp decline. Although financial markets in the US remain closed on Monday, investors will scrutinize political headlines and comments from Fed officials.
Five fundamentals for the week: Peace talks, Fed minutes and German election stand out Premium
US President Donald Trump remains prominent, especially in a week when high-level peace talks kick off. Nevertheless, the Commander-in-Chief competes with the world's most powerful central bank, and other events are of interest as well.
Bitcoin Price Forecast: BTC stalemate soon coming to an end
Bitcoin price has been consolidating between $94,000 and $100,000 for almost two weeks. Amid this consolidation, investor sentiment remains indecisive, with US spot ETFs recording a $580.2 million net outflow last week, signaling institutional demand weakness.
The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.