Trump signs measures to impose 'fair and reciprocal' tariffs

President Donald Trump signed a memorandum Thursday to implement "fair and reciprocal" trade tariffs for all major US trading partners, including allies.

The Republican's plan for US tariffs aims to match the tax rates other countries charge on imports.

The intent is to eliminate any trade imbalance from the United States.

The memo signed Thursday asks Howard Lutnick, Trump's nominee for commerce secretary, and Jamieson Greer, his global trade representative, to assess within 180 days in a country-by-country report whether "solutions" are needed to ensure reciprocal trade relations.

Russell Vought, Trump's nominee to head the Office of Management and Budget, will also submit a report within that timeframe on the fiscal impact of implementing the measures.

On his Truth account, Trump wrote: "TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!! MAKE AMERICA GREAT AGAIN!!!"

Also, in the Oval Office of the White House, Trump noted "I’ve decided for purposes of fairness that I will charge a reciprocal tariff, it’s fair to all. No other country can complain.”

Hours later, he commented again on his Truth account and explained the reason for the tariff measures.

“For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff. Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted. In addition, we will make provision for subsidies provided by Countries in order to take Economic advantage of the United States. Likewise, provisions will be made for Nonmonetary Tariffs and Trade Barriers that some Countries charge in order to keep our product out of their domain or, if they do not even let US businesses operate. We are able to accurately determine the cost of these Nonmonetary Trade Barriers. It is fair to all, no other Country can complain and, in some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us. There are no Tariffs if you manufacture or build your product in the United States.”

He continued, "For many years, the US has been treated unfairly by other Countries, both friend and foe. This System will immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade. America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS. I have instructed my Secretary of State, Secretary of Commerce, Secretary of the Treasury, and United States Trade Representative (USTR) to do all work necessary to deliver RECIPROCITY to our System of Trade!"

Protect Domestic Industry

Trump took decisive action to protect critical US industries by reinstating a 25% tariff on steel imports and raising the tariff to 25% on aluminum imports.

Delivering on his promises

The Republican pledged on the campaign trail to impose on any country that charges a tariff on a US-made product "the exact same tariff" on its products.

Trump, so far in office, has already imposed several tariffs. A 10% tariff on Chinese imports due to the country's role in the production of fentanyl.

He has also prepared tariffs on Canada and Mexico, which could go into effect in March after being suspended for 30 days.

On top of that, he removed exemptions from his 2018 tariffs on steel and aluminum on Monday, and he has mulled new tariffs on computer chips and pharmaceutical drugs.