Trump orders reciprocal tariffs on countries treating us imports unfairly — with eu, india, japan in crosshairs

WASHINGTON — President Trump ordered reciprocal tariffs Thursday on countries found to treat US imports unfairly — with the European Union, India and Japan among the targets. “This should

have been done years ago,” Trump, 78, told reporters in the Oval Office. “This is going to be the thing that makes our country really prosperous again, and this is going to be what pays down

the $36 trillion in debt.” The order requires the Office of the US Trade Representative (USTR) and Commerce Secretary-designate Howard Lutnick to rapidly draft recommendations — with the

Office of Management and Budget due to submit a fiscal-impact report within 180 days, possibly after the first levies are already imposed. “We think that the prices for some things, many

things, it could be all things, will go down — ultimately will go down,” Trump said, defending against criticism that dometic consumer costs could jump as a result of the fees. EXPLORE MORE

Lutnick, appearing with Trump in the Oval Office, said that the first reciprocal tariffs could come as early as April 2. “If they drop their tariffs, prices for Americans are coming down,

our production is going up, and our costs are going down,” Lutnick said. “Remember, it’s a two-way street, that’s why it’s called reciprocal.” A White House official told reporters that the

US will take special aim at India, which the person called “the maharaja of tariffs,” as well as the European Union’s value added tax (VAT) averaging 21.8%, which “works effectively like a

tariff,” and Japan, which the official said has steep non-tariff barriers to US imports. “We expect every country to take action, because it is patently obvious on its face that they are

cheating us,” the official said, dissing India’s trade policies mere hours before Trump met with visiting Prime Minister Narendra Modi at the White House. “If we can balance our trade,

that’s a trillion-dollar gain annually.” Trump said that he intended to press Modi to lower tariffs during their meetings later in the day. Lutnick and USTR-designee Jamieson Greer will

“quickly” draft proposed actions and the retaliatory tariffs will be enacted “in Trump time, which is to say very rapidly,” the official said. It’s possible that some of the reciprocal

tariff plans won’t be enacted if other countries agree to “correct” their policies, this person went on. The president previously cited European countries’ VAT as a looming target of his

trade offensive. The official explained Germany is exporting more cars to the US due to “pure mercantilism” — singling out policies of the VAT tax being refunded to car exporters while it is

then charged for imports, as well as the fact that Germany currently has a 10% car import tariff versus America’s 2.5%. BMW’s CEO Oliver Zipse proposed lowering Germany’s car import tariff

to 2.5% shortly after Trump took office last month. EU officials have said they’re considering adopting the lower rate to appease Trump. “America runs its more than a trillion-dollar

pernicious trade deficit,” said White House trader adviser Peter Navarro, “because the major exporting nations of the world attack our markets with punishing tariffs and even more punishing

non-tariff barriers.” “A poster child,” Navarro added, “is the EU’s value added tax, which almost triples the EU’s tariff rate on American exports, even as it heavily subsidizes the EU’s

exports.” A White House fact sheet identified a handful of additional examples — including Brazil’s 18% ethanol tariff versus the US’s 2.5% rate. The document also cited India’s 39% tariff

on agricultural goods versus the US’s 5% and the EU’s bans on shellfish from 48 states, which it said contributed to America importing $236 million more in shellfish annually than it sends

back to the continent. “A 2019 report found that across 132 countries and more than 600,000 product lines, United States exporters face higher tariffs more than two-thirds of the time,” the

fact sheet said. The latest trade order also encompasses possible tariffs on countries that are allegedly undervaluing their currency to boost the competitiveness of companies shipping

products abroad. START AND END YOUR DAY INFORMED WITH OUR NEWSLETTERS Morning Report and Evening Update: Your source for today's top stories THANKS FOR SIGNING UP! Trump previously has

scored concessions by announcing tariffs, including delaying until March 5 the possible adoption of a new 25% tariff on both Canada and Mexico when the countries agreed to bolster efforts to

deter illegal immigration and fentanyl smuggling. His additional plan for a 10% tariff on Chinese imports is proceeding as Beijing prepares for retaliatory levies. Trump on Monday ordered a

flat 25% tariff on steel and aluminum imports, ending steel exemptions for the top importing countries and raising a prior 10% rate for aluminum — though the president later said he’s

considering allowing Australia to be exempt due to America’s trade surplus with the country. Additional looming tariffs include plans to slap new charges on copper, computer chips and

pharmaceuticals, though Trump hasn’t specified a timeframe. The early-term tariff initiatives come as the Elon Musk-led Department of Government Efficiency project seeks to trim $1 trillion

from federal government spending — with actions including the near-total elimination of the US Agency for International Development, the Consumer Financial Protection Bureau and the

Education Department — with a goal of halving the nearly $2 trillion federal deficit. About 75,000 federal workers have accepted a buyout offer to leave their posts, according to the White

House, while all foreign aid has been paused. Trump is also pushing Congress to adopt a raft of pricey tax cuts that he campaigned on — including to eliminate taxes on tips, overtime, Social

Security benefits and domestic car interest, and scrapping the $10,000 state and local tax deduction. He’s argued that tariffs could make up the difference in federal revenue, though budget

hawks are wary of the fiscal impact.