Donald Trump signs his plan for reciprocal tariffs on 'both friend and foe'

Published On Feb 13, 2025, 2:37 PM

President Donald Trump has signed a plan for reciprocal tariffs that will affect trade with countries charging the U.S. higher tariffs. Initially targeting India, the duties could begin by April after negotiations are held with the countries involved. Trump asserts that these tariffs are necessary to ensure fair treatment for American exports, stating current tariffs from other nations are generally higher than those imposed by the U.S. This policy is part of a broader strategy to address uneven trade balances, which has been a longstanding goal for Trump.

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The implementation of reciprocal tariffs could lead to increased costs for American importers, potentially resulting in higher consumer prices. Stocks within sectors heavily reliant on international trade may experience volatility as these tariffs are announced and negotiated further. Companies that rely on foreign materials for manufacturing, such as those in the industrial and consumer goods sectors, could see downward pressure on their stocks if their costs rise significantly.

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