Trump Tariff Targets

February 10, 2025

Donald Trump will reconstitute trade on February 11 by introducing “reciprocity” as America’s core principle behind its tariff rates. Throughout history, tariff rates have been used as carrots or sticks. Trump’s new criterion is that tariffs on imports from a country into America will match the charges the country adds to American exports. Tit for tat. The idea is to level the playing field and adversely impact countries with higher tariffs and low-cost labor that have gutted the industrial regions of developed nations. Tariffs are about politics and protectionism. For instance, the European Union imposes a 10% tariff on all auto imports, but the U.S. imposes only 2.5%. This advantage has been enjoyed by post-war Europe to help it rebuild after WW2 and has upset Trump for years. “They [Europe] `won't take our cars’ but ship millions west across the Atlantic every year,” he said. Japan also rebuilt by taking advantage of favorable tariff rates, as did China and the Asia Tigers. But those days are coming to an end. They will be hit hard by reciprocity and other political considerations, and America will benefit. "I'll be announcing reciprocal trade so that we're treated evenly with other countries," Trump said. "We don't want anymore, any less."