U.S. to propose uniform tariffs for trading partners

U.S. Treasury Secretary Scott Bessent announced that the Trump administration will reveal proposed tariff rates for its trading partners on April 2. This plan aims to provide countries an opportunity to lower their own tariffs or resolve U.S. concerns before the new rates take effect. President Trump has promised "reciprocal" tariffs as part of a strategy to change the international trading system. It has not been clear how these tariffs would be applied, whether on a country-by-country basis or with a simpler approach. Bessent indicated the U.S. might use one tariff rate per country, which could be negotiable. Bessent explained that the tariff numbers will reflect other countries’ tariffs on U.S. goods and additional factors that the administration sees as disadvantageous. He emphasized that the U.S. will discuss these tariffs with the countries involved, aiming for cooperation instead of penalties. There is uncertainty about how the U.S. will determine these single tariff rates. This announcement is also complicated by existing tariffs on steel, aluminum, and goods from Canada and Mexico. Analysts are trying to predict the potential impact of the upcoming tariffs, especially on Canada, where most goods currently enter tariff-free under a trade agreement. As Bessent speaks on behalf of the administration, some analysts are skeptical about the consistency and support from President Trump. Canada’s tariffs on U.S. goods are low, with most entering the country either duty-free or at minimal rates. The relevance of Canada’s value-added taxes and other non-tariff barriers to these new tariffs is a significant topic of debate. Though many believe that reciprocal tariffs will be low if only tariffs are considered, the administration is also assessing non-tariff measures. Comments from experts suggest that the details of the reciprocal tariffs remain uncertain, as various factors will influence their final form.