President Donald Trump on Thursday signed a memorandum laying out plans to impose reciprocal tariffs on foreign countries.
If implemented, the changes could fundamentally alter pricing on goods and services in the U.S. and around the world.
Tim Brightbill, a trade attorney at the Washington-based Wiley Rein law firm, said, “If President Trump does move the United States to a reciprocity-based tariff system, that would arguably be a fundamental change to U.S. trade policy, and among the biggest in more than 75 years.”
The tariffs will not simply match other countries’ tariffs on U.S. exports to their country. Instead, the memorandum said U.S. officials will consider value-added taxes, non-tariff pricing such as country subsidies, exchange rate impacts that cause the dollar to be devalued in other countries and any “unfair trade practices” that warrant tariffs in response.
The plan is unlikely to begin before April 1. The president directed Commerce Secretary Howard Lutnick, U.S. Trade Representative nominee Jamieson Greer, Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem to collaborate and quickly submit a report detailing proposals for every country.
Office of Management and Budget Director Russell Vought would then submit a fiscal impact report on the tariffs within 180 days. However, the reciprocal tariffs likely would be introduced before the 180-day review period ends, White House officials said.
Data compiled by the Trade Partnership Worldwide estimated that U.S. businesses would pay up to $433 billion in new tariffs in 2025. The total includes $11 billion in steel and aluminum tariffs and $43 billion in tariffs on China-made products—assuming the current 10% tariffs are not raised during the reciprocal tariff review.
The Trade Partnership Worldwide found Indiana imported $49.7 billion in products from the European Union in the first 11 months of 2024. The state paid an effective tariff rate—the total tariffs paid over the total import value—of 0.2%. The group estimated the state’s tariff cost for China, Canada and Mexico increases to be $4.4 billion over the first 11 months of 2024, a 311% increase.
