The United States is preparing to impose new tariffs on countries it deems to have unfair trade policies, following a directive signed by President Donald Trump. The White House announced that a plan for “reciprocal trade and tariffs” will be developed within six months, with a focus on nations that maintain high import taxes on American goods.
The move is likely to have significant implications for US trading partners, particularly the European Union, India, Vietnam, and Thailand, which rely heavily on exports to the American market. While Trump argues the policy will strengthen domestic manufacturing, critics warn it could fuel tensions and disrupt global trade.
US Aims for Tariff Parity in Global Trade
The White House has framed its latest tariff initiative as a response to what it sees as imbalanced trade relationships. According to the administration, many foreign nations impose higher tariffs on US products than the US does on theirs, putting American exporters at a disadvantage.
For example, the European Union levies a 10% tariff on US-made cars, while the US imposes just 2.5% on European cars, according to World Trade Organization (WTO) data. Similarly, the White House highlighted that Brazil applies an 18% tax on ethanol imports, compared with a 2.5% duty on Brazilian ethanol entering the US.
In a statement, Commerce Secretary Howard Lutnick confirmed his department is developing a detailed report on trade policies affecting the US. This review, due by 1 April, will examine tariff structures, exchange rates, trade balances, and regulatory frameworks across key economies. Trump’s plan was unveiled shortly before his meeting with Indian Prime Minister Narendra Modi, where he reiterated his call for “equal treatment” in trade.
Potential Global Impact of New US Tariffs
Trump’s announcement has already prompted responses from several major US trade partners. Thailand and Vietnam have reportedly begun reviewing their trade policies with the US, while the European Union has stated it will seek a “constructive engagement” to avoid economic conflict.
According to Duncan Edwards, chief executive of BritishAmerican Business, the impact on the UK remains uncertain. While Britain has a relatively open market, he noted that “nothing should be taken for granted”, as details of the new US tariff strategy remain unclear.
Meanwhile, economists and business leaders have expressed concerns over the potential economic fallout. According to the Tax Foundation, tariffs often lead to higher costs for businesses and consumers, increasing prices across multiple industries.
While Trump has dismissed such concerns, stating that tariffs will boost domestic jobs, recent polling suggests the US public remains sceptical. A Marquette Law School survey found that only 24% of respondents believe tariffs will benefit the US economy, with concerns over rising costs influencing public opinion.
