A presidential memorandum was issued on February 13, 2025, initiating an investigation into the implementation of reciprocal tariffs on foreign nations. The examination is anticipated to commence after April 1, with no specific completion date currently established. The inquiry will concentrate on the following areas:
- Tariffs levied on American products
- Unjust, discriminatory, or extraterritorial taxes imposed by trading partners on U.S. businesses, workers, and consumers, including value-added taxes
- Financial impacts on U.S. businesses, workers, and consumers resulting from non-tariff barriers or measures; unfair or detrimental actions, policies, or practices, including subsidies; and onerous regulatory requirements faced by U.S. businesses operating abroad
- Policies and practices that lead to deviations in exchange rates from their market values, adversely affecting Americans
- Wage suppression
- Other mercantilist strategies that diminish the competitiveness of U.S. businesses and workers
- Any additional practices considered to impose unfair restrictions on market access or structural barriers to equitable competition with the U.S. market economy
Reciprocal tariffs refer to the application of equivalent duty rates on imports into the U.S. based on the tariffs that other countries impose on American goods. Various strategies can be employed to implement this, including:
- Country-Level Reciprocity: Applying the average tariff rate that a trading partner imposes on U.S. products
- Product-Level Reciprocity: Imposing tariffs on a case-by-case basis for each product from different trading partners
- Inclusion of Non-Tariff Barriers: Taking into account additional expenses such as inspection fees and value-added taxes (VATs) in the tariff assessments
The White House Fact Sheet regarding this trade plan may be found through this link: Fact Sheet: President Donald J. Trump Announces “Fair and Reciprocal Plan” on Trade.
At Taggart, we are dedicated to delivering the most current information to serve as a valuable resource and partner in your supply chain. We will persist in closely observing this ever-changing trade landscape and will keep you informed of pertinent updates.
