So-called “reciprocal tariffs” proposed by US President Trump slated to go into effect April 2 on all nations trading with the US might not be as widespread as originally planned, according to media reports circulated by Bloomberg and CNN. The reports caused US stocks to rally, sending the Dow Jones Industrial Average 1.42 percent higher, while the S&P 500 climbed more than 2.27 percent on the day.
According to the reports, Trump’s focus on new reciprocal tariffs will be more “measured,” with the concentration narrowed to the so-called “dirty 15 ” nations that have the highest current trade imbalances with the US. Today’s announcement on social media platform Truth Social comes after Trump hinted Friday, March 21, that there might be some “flexibility” in how he imposes the new tariff duties.
In addition to current 25 percent Section 232 import tariffs on all goods imported into the US which went into effect on March 12, the new reciprocal tariffs would match in a “tit-for-tat” fashion, any tariff duty currently levied against the US. Current 25 percent tariffs against the US’ two major trading partners Canada and Mexico, were delayed on March 6 until April 2 on goods and services that are compliant with the USMCA treaty negotiated by Trump in his first term. This includes steel and aluminum.
Trump also said he would impose secondary tariffs on Venezuela, which would go into effect on April 2, his so-called “Liberation Day.” In a social media post on Truth Social he said counties that buy oil or gas from Venezuela would face a 25 percent tariff when trading with the US. Trump cited “numerous reasons” for the new proposed Venezuela tariffs, citing hostility to the US and an influx of criminals entering the country as the main reasons.
Trump also said he will announce additional tariffs on autos, lumber and computer chips over the next few days as a means to raise funds to pay for Republican tax and spending programs promised to supporters during his recent presidential campaign.