Trump launches plan to target countries with 'reciprocal' tariffs

Published On Feb 13, 2025, 4:42 PM

President Trump has signed a memo instructing his administration to develop reciprocal tariffs aimed at countries with perceived unfair trade practices, particularly targeting the EU, India, Vietnam, and Thailand. The plan, which is to be reported back within 180 days, is touted as an effort to boost U.S. manufacturing and investment by equalizing tariff rates. There are concerns that these measures could escalate trade tensions and could lead to economic repercussions such as higher consumer prices in the U.S.

Stock Forecasts

SPY

Negative

The potential introduction of reciprocal tariffs could create a challenging environment for multinational companies and could negatively affect sectors reliant on trade. The uncertainty surrounding tariffs may weigh on investments in industries sensitive to manufacturing costs and consumer goods pricing.

XLI

Positive

Conversely, companies focused on domestic production may see a boost from efforts to increase jobs and manufacturing within the U.S., making them potentially profitable in the long run.

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Stocks rallied on Thursday as investors digested fresh inflation data and new tariff announcements from President Trump.

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SPY

President Donald Trump is planning to impose reciprocal tariffs on U.S. trading partners to match tariffs on imports to those imposed on American exporters by foreign countries.

President Donald Trump announced Thursday that the U.S. is implementing reciprocal tariffs with their trade partners for "purposes of fairness."