Trump plans reciprocal tariffs to match foreign import taxes

U.S. President Donald Trump plans to implement "reciprocal tariffs," which would raise import taxes to match those imposed by other countries on U.S. goods. This approach aims to create fairer trade conditions but may lead to retaliatory measures from affected nations. The tariffs could target countries with high trade deficits or significant trade imbalances with the U.S., including Brazil and India. For example, Brazil's 18% tariff on U.S. ethanol exports contrasts with the U.S. rate of 2.5%. The administration is currently studying the issue, with potential tariffs starting as early as April 2. Analysts warn that these tariffs could increase costs for U.S. importers and provoke retaliation from other countries, complicating trade negotiations.