On Thursday, Donald Trump signed an executive order directing the development of a plan to impose ”fair, reciprocal tariffs” on any country that levies import duties on U.S. goods. Many believe the decision represents another step toward a global trade war.
President Trump stated during a press conference on Thursday that ”if they impose a tax or tariff on us, we will impose the same tax on them.” The question is whether the announced tariffs will lead to the global trade war that many experts believe will harm international trade and global supply chains by driving up costs and prices.
So far, Trump’s announced import tariffs on Canadian and Mexican goods have been postponed, while 10 percent tariffs on imports from China have been imposed, as well as general tariffs on steel and aluminum, which has caused concern in several industries, including the automotive and packaging industries.
”When it comes to trade, I have decided that fairness must prevail, that I will impose reciprocal tariffs, which means that whatever countries charge the U.S., we will charge them in return. No more, no less,” Trump said during the press conference.
