President Donald Trump signed a memorandum on “reciprocal trade and tariffs” in the Oval Office Thursday, calling on his Cabinet members to draw up a plan to respond to foreign tariffs on American goods.
“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,” said Trump in the Oval Office.
“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’s “Fair and Reciprocal Plan” requires that his administration determines “the equivalent of a reciprocal tariff with respect to each foreign trading partner” so that the president can implement those taxes across the board.
Various Cabinet members, including the secretaries of state, commerce, and homeland security, are required under the plan to submit a report to Trump on foreign trade barriers.
Trump’s plan was greeted with praise from Republican lawmakers, especially those from largely deindustrialized states in Middle America.
Freshman Rep. Riley Moore, R-W.Va.—who has proposed legislation to give Trump more power to levy tariffs—said in a statement that the plan would help level the playing field with foreign countries.
“By using reciprocal tariffs, we can ultimately reduce these barriers to foreign markets, boost demand for American products across the globe, and increase free and fair trade,” said Moore.
Sen. Jim Banks, R-Ind., likewise said that “the reciprocal tariffs announced today will bring back fairness and prosperity and stop Americans from being taken advantage of,” arguing that “the globalist approach to trade threw our workers under a bus.”
Sen. Pete Ricketts, R-Neb., in a statement to The Daily Signal, argued that the tariffs would fulfill Trump’s campaign promises of establishing more even trade deals.
“The average weighted tariff on foreign products coming into the U.S. is 1.5%, yet the average tariff on U.S. products globally is 6%. President Trump promised to bring those numbers closer to balance. These tariffs are a step toward accomplishing that goal,” said Ricketts.
Although Trump’s plan does not implement any immediate tariffs, it is a sign that he means business on his promises after he temporarily delayed tariffs against Mexico and Canada.
The plan also follows an executive order Tuesday that removed loopholes that prevented countries from bearing the brunt of American tariffs on steel.
This article was originally published at www.dailysignal.com
