Trump Signs Order to Study Reciprocal Tariffs

On Thursday, President Donald Trump signed a memo directing federal agencies to study reciprocal tariffs to address trade imbalances. 

The Details: The intention behind creating reciprocal tariffs, which match the tax rates countries charge on imports, is to allow U.S. manufacturers to compete internationally. The order does not immediately impose the tariffs, but rather directs the Commerce Department and the U.S. trade representative to figure out logistics of the proposed plan. 

For Context: Critics of Trump’s tariff plan argue that the increase in cost from tariffs will likely be passed onto the consumers in the form of higher prices. It still remains unclear how Trump can legally impose this plan, or which countries and goods it will affect more than others. 

Key Quote: "On trade, I have decided for purposes of fairness, that I will charge a reciprocal tariff — meaning whatever countries charge the United States of America, we will charge them no more, no less. In other words, they charge us a tax or tariff, and we charge them the exact same tax or tariff. Very simple," Trump said at the White House.

How The Media Covered It: The Wall Street Journal (Center bias) emphasized that the tariff plan is simply being researched and not immediately imposed, and that if it’s followed through it would “make good on one of Trump’s campaign pledges.” Associated Press (Left) didn’t emphasize that the plan is only being studied and suggested it “could easily backfire.” Fox Business (Lean Right) mentioned a source who said the plan will also investigate and counter nonreciprocal trade.