In a post shared on his social media platform, Truth Social, on Thursday morning, President Donald Trump vowed to issue reciprocal tariffs. This comes after much teasing to the press regarding the measure during his first weeks in the Oval Office.
“THREE GREAT WEEKS, PERHAPS THE BEST EVER, BUT TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!! MAKE AMERICA GREAT AGAIN!!!” the President wrote.
Reciprocal tariffs refer to tariffs—the taxes charged on imported goods—the U.S. government plans to levy against global trading partners that are equal to the existing tariffs foreign countries have set against American goods.
“Very simply, it’s if they charge us, we charge them,” the President said on Sunday during a flight on Air Force One.
Read More: What Are Tariffs and Why Is Trump In Favor of Them?
The announcement is one of a raft of tariffs Trump has issued against even the U.S.’ closest allies. Most recently, he announced a 25% tariff on steel and aluminum imports, in an act that the Administration said would protect national security and “put American workers first.” The tariffs are also a part of a larger tussle happening between the U.S. and its key global partners, most notably China, Mexico, and Canada.
While the number and names of the countries that are set to be affected by the reciprocal tariffs is currently unknown, Trump said on Sunday that they would go into effect “almost immediately” and affect “every country.”
The measure, Trump argues, would equalize the playing field for the U.S. in regards to global trade. Reciprocal tariffs, a promise the President made on the campaign trail, are also seen as a way to raise revenue for the U.S.
Tariffs used to be the main source of federal revenue for many countries through the late 19th century, according to the Congressional Research Service (CRS), but they are now used as a way to protect domestic industries, or as “negotiating leverage.”
Read More: How Trump’s Tariffs Could Affect U.S. Consumers
In the past few decades, the revenue made from tariffs have only accounted for around 2% of the federal revenue. For the fiscal year 2024, for instance, $77 billion was collected in tariffs, which makes up approximately 1.57% of the total federal revenue.
Some 70% of goods currently enter the U.S. duty free, though that is set to change under Trump, who was also critical of low tariffs during his first Administration. During a previous round of World Trade Organization negotiations, the U.S. was unable to convince China, India, and Brazil to lower their tariff rates, per CRS. Some of those countries are expected to be the most affected by reciprocal tariffs this time around.
The White House is set to host a press conference at 1 p.m. EST, where Trump is expected to make the official announcement.
