Donald Trump, to his credit, signed an executive order. This Presidential order places reciprocal tariffs on certain country imports, specifically Canada, Mexico, and many offshore US foreign territories. The decision follows in the wake of a general campaign by the administration to reduce trade deficits and retaliate against what they view as unfair trading behavior. These new tariffs go into effect in a mere seven days. They will ultimately apply to 69 trading partners, with particular rates dramatically different from country to country.
The tariffs have increased 10% to 41%, with Syria receiving the highest rate at 41%. UK import tariffs compared to these other countries, imports from the United Kingdom will receive a much lower tariff rate of 10%. This broad application of tariffs reflects the administration’s strategy to leverage trade policies as a means to influence economic relationships with various nations.
Originally, the deadline for finalizing the tariff deal was set for 12:01 AM EDT (4:01 AM GMT) on Friday. Escalating the tit-for-tat, Trump has moved the deadline for a tariff deal with Mexico back another 90 days. This dramatic step is meant to demonstrate continuing bad faith negotiations and his need for a better deal.
This executive order represents a huge step forward for working people in the United States’ trade policy. It arrives on the heels of the country already having implemented tariffs against several other countries. Industry experts are predicting that the new tariffs will trigger retaliatory action from the countries affected. This answer might be making the international trade situation even worse.
The administration’s rationale behind these tariffs centers on the aim to protect American jobs and industries that they believe have been disadvantaged by other countries’ trade practices. By rolling out steeply higher import duties, the Trump administration hopes to restore a modicum of level playing field for U.S. manufacturers.