Trump set to impose reciprocal tariffs in bold move here are the possible risks, rewards

President Donald Trump is preparing to introduce reciprocal tariffs this week — a major change in trade policy that could have far-reaching consequences for domestic inflation rates as well as global commerce.The idea is straightforward: if another country imposes a tariff on American products, the US will respond by applying the same tariff to that country’s goods.This strategy is intended to create a fairer trade environment but could also escalate tensions and potentially trigger a new tariff war, experts warn.The European Union currently places a 10% tariff on cars imported from the United States, whereas the US only charges a 2.5% tariff on European vehicles, according to Stephen Innes of SPI Asset Management.The goal of Trump’s reciprocal tariff plan is to eliminate these imbalances.

“I’ll be announcing that next week — on reciprocal trade — so that we’re treated evenly with other countries.We don’t want any more or any less,” Trump told reporters in the Oval Office on Friday.The president added that he planned to hold a press conference on the matter as well as a meeting on the issue either on Monday or Tuesday.

Trump indicated on Friday that reciprocal tariffs might replace the proposed 10% to 20% universal import duty that was a key part of his economic agenda during the campaign.He stated that he was leaning toward implementing “mostly” reciprocal tariffs rather than broad import duties applied across the board.Trump announced on Sunday that he is set to implement a unversal 25% tariff on all imports of steel and aluminum, expanding trade restrictions to key trading partners in an effort to protect domestic industries that played a crucial role in his electoral success in battleground states.Speaking to reporters aboard Air Force One on Sunday, he confirmed that the tariffs would apply to imports from all countries, including major suppliers like Mexico and Canada.However, he did not specify when the new duties would take effect....