Access the White House Watch newsletter for free
Your comprehensive overview of the implications of the 2024 US election for Washington and the globe
On Thursday, Donald Trump introduced an extensive plan to implement “reciprocal” tariffs on the United States’ largest trading partners, signaling more upheaval for the global economy.
Targeting both allies and adversaries, Trump instructed his senior trade advisers to develop new tariffs on a “country-by-country” basis in response to tariffs, regulations, and subsidies considered unfair by the U.S.
White House officials and Trump indicated that trading partners such as Brazil, India, Japan, Canada, and the EU could face these new tariffs.
However, an official mentioned that the administration would prioritize examining nations with significant trade deficits with the U.S., including Mexico and China, before applying the new tariffs.
“I’ve made the decision that, to ensure fairness, I will implement a reciprocal tariff, which means whatever tariffs other countries levy on the United States,” Trump stated. “In most instances, they’re charging us significantly more than we charge them, and that will change.”
Trump’s reciprocal tariff plan, which could take effect as soon as April 2, is expected to prompt negotiations in capitals around the world to prevent the tariffs from being enacted.
This tariff announcement comes during a week when Trump sought to reshape the geopolitical landscape by renewing efforts to end the war in Ukraine through outreach to Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy.
While hosting India’s Prime Minister Narendra Modi, Trump criticized traditional U.S. allies, appearing to extend a hand to rivals like China and Russia. He even suggested inviting Russia to rejoin the G7 after its suspension in 2014 due to the Crimea annexation.
“It’s not about being pro-Russia or anti-Russia,” Trump told reporters in the Oval Office. “All everyone talks about is Russia, and they should be included in discussions. I believe Putin would like to be reinstated.”
Trump unsettled European allies by facilitating direct talks with Moscow in an effort to negotiate a resolution in Ukraine. U.S. Defense Secretary Pete Hegseth had already downplayed Ukraine’s aspirations to join NATO and reclaim territory lost to Russia.
Trump asserted that any discussions with Putin regarding the end of the war would also involve Kyiv, while also planning talks with China and Russia about reducing America’s substantial $850 billion defense budget.
He expressed optimism about U.S. relations with China, saying: “I think we can have a very positive relationship with China; they can play a crucial role in helping to end the war in Ukraine.”
His statements contrast sharply with those of his top military commander in the Indo-Pacific, who labeled China, Russia, and North Korea as forming an “emerging axis of autocracy” on the same day.
Trump did not hold back in his criticism of the EU, referring to the longtime U.S. ally as “very nasty.” He called out the bloc for its value-added tax, digital services tax, and attempts to limit American tech companies’ activities in its courts.
“The European Union has been very harsh on our companies,” Trump remarked. “They have sued Apple, Google, Facebook, and many other American firms. The legal environment there is not favorable to our businesses.”
During their White House meeting, Trump praised Modi as a “very special man” and emphasized the “special bond” between India and the U.S.
Nonetheless, he criticized India for its high tariffs and outlined plans to boost U.S. oil, gas, and defense exports to India, aiming to address a trade deficit that exceeded $35 billion last year.
Trump stated that he and Modi would initiate “negotiations to tackle the long-standing issues that should have been resolved in the past four years” with the aim of finalizing a trade agreement.
White House officials noted that they may utilize various legal authorities to enforce the tariffs, such as Section 301 of the Trade Act and the International Emergency Economic Powers Act, circumventing Congress.
Trump announced his intentions to levy additional tariffs on automobiles, chips, and pharmaceuticals “beyond” the reciprocal tariffs. He has already placed a 10 percent tariff on all Chinese imports, while 25 percent tariffs on steel and aluminum imports are set to be implemented next month.
Additional reporting from John Reed in Delhi
