President Trump signed an order Thursday that calls for reciprocal tariffs on friendly and rival nations alike, saying too many places are taking advantage of duty-free treatment in the U.S. even as they tax American goods that flow across their borders.
The new tariffs would likely hit trading partners such as Japan, India, the E.U. and the U.K.
The memorandum orders his team to devise levies based on the tariffs nations impose on U.S. goods, plus other factors, such as subsidies nations give their industrial sectors.
“This should have been done years ago,” Mr. Trump said in the Oval Office.
The maneuver will supercharge the administration’s risky trade wars with other nations, and likely prompt industries to seek carveouts.
Tariffs are a tax or duty paid by importers on the goods they bring in from foreign markets.
Mr. Trump is using tariffs to force companies to return to America or keep their operations in the U.S., employ American workers and create revenue to fund domestic programs.
“If you build your product in the United States, there are no tariffs,” Mr. Trump said. “Tariffs are good. Tariffs are great actually.”
Yet tariffs can raise costs along the supply chain.
Foreign countries don’t pay the tariffs directly to the U.S. Treasury. In many cases, U.S. companies pay the levies, and they might pass on at least some of the cost to consumers through higher prices.
Mr. Trump’s reciprocal tariffs cap an aggressive month on trade.
The president imposed a 25% tariff on steel and aluminum on Monday. He’s also vowed a sweeping 25% tariff on all goods from Mexico and Canada if they don’t meet his immigration and drug-enforcement demands, a threat with sweeping implications for the auto industry.
The president also has imposed a 10% tariff on all imports from China. Beijing has responded with tariffs of 15% on coal and liquefied natural gas products, and 10% on crude oil, agricultural machinery and large-engine cars from the U.S.
Other foreign targets, including the European Union and Canada, have called Mr. Trump’s action unjustified and threatened to retaliate.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.