Trump proposes reciprocal tariffs to address trade imbalances

President Trump announced a new initiative on reciprocal tariffs aimed at balancing trade relationships with foreign nations, particularly those he believes impose unfair tariffs on U.S. products. The tariffs will be customized for each trading partner and are designed to offset existing tariffs, subsidies, and other barriers that disadvantage American businesses. This proposal, which he termed a core campaign promise, was revealed before his meeting with Indian Prime Minister Narendra Modi and follows Trump's recent imposition of a 25% tariff on steel and aluminum imports. While these tariffs are intended to boost U.S. revenue, they raise concerns about potential trade tensions and inflation. Trump's administration is expected to study the impact of these tariffs on individual countries, particularly those with significant trade deficits with the U.S. The initiative reflects a broader strategy to renegotiate trade terms and challenge practices that Trump characterizes as inequitable.