US President Donald Trump, in his latest move, unveiled plans to impose reciprocal tariffs on the countries that have imposed duties on American imports.
According to ABC News, for “a level playing field,” Trump on Thursday, February 13, 2025, signed an executive action named the “Fair and Reciprocal Plan” in the Oval Office.
Before signing the new roadmap, he told reporters, “I’ve decided for purposes of fairness that I will charge a reciprocal tariff. It’s fair to all. No other country can complain... We want a level playing field... They charge us a tax or tariff, and we charge them the exact same. Nobody knows what that number is unless you go by country.”
The 78-year-old emphasised that the US needs a fairer trade policy that can make its goods attractive in the trade market.
As per the White House fact sheet outlining the executive action, “The United States is one of the most open economies in the world, yet our trading partners keep their markets closed to our exports. This lack of reciprocity is unfair and contributes to our large and persistent annual trade deficit.”
The fact sheet claimed that India “charges a 100% tariff on U.S. motorcycles, while we only charge a 2.4% tariff on Indian motorcycles,” which means that the US is planning steeper tariffs on India.
Notably, the new orders came ahead of Trump's meeting with the Indian Prime Minister Narendra Modi.
Furthermore, the reciprocal tariff plan could have sparked a trade war between the US and other countries. It could also backfores of American economy if the tariffs drive up inflation and slow down growth.
