Trump signs reciprocal tariff plan: Economists weigh in on how it could work

Published On Feb 13, 2025, 3:01 PM

Former President Trump has signed an executive order for implementing reciprocal tariffs, which would raise duties on imports to match tariffs enforced by trading partners on U.S. exports. This initiative is meant to address substantial imbalances in trade and could be aimed at countries with high trade surpluses with the U.S. The policy could increase the average tariff rates in the U.S. but may also reduce trade uncertainty. The effectiveness and scope of these tariffs will depend on ongoing negotiations with foreign partner countries.