WASHINGTON: President Donald Trump told Republican lawmakers that he plans to announce reciprocal tariffs as early as Friday, three sources familiar with the plans told Reuters.
The move would fullfill a Trump campaign promise to impose tariffs on American imports equal to the rates that trading partners impose on American exports. It was not immediately clear which countries would be affected since details of the proposal were not known.
Trump told Republican lawmakers of his plans during budget discussions at the White House on Thursday, the sources said. Trump and top aides have said they plan to use higher tariffs on foreign imports to help pay for extending Trump’s 2017 tax cuts.
Raising enough money in tariffs to make a dent on the U.S. budget would be difficult since they have accounted for only about 2% of annual revenues in recent years.
IMF says too early for precise analysis on Trump tariff impact
The White House did not immediately respond to requests for comment. Trump announced tariffs of 25% on Canada and Mexico on Saturday but delayed them after a negative reaction from investors. The two largest U.S. trading partners agreed to increase enforcement efforts at the border, a top Trump priority.
Wall Street extended losses on Friday following the Reuters report of Trump’s discussion with lawmakers.
American Dollar Exchange Rate