Trump Prepares to Announce New Tariffs Next Week, Aiming for Fair Trade

President Donald Trump has confirmed that he will introduce reciprocal tariffs on multiple countries, with an official announcement expected by Monday or Tuesday. This move is part of his ongoing push to reshape global trade policies in favor of the United States.

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Although Trump did not specify which countries would be impacted, he emphasized that the goal is to ensure fair trade conditions for American businesses. “We want to be treated fairly—no more, no less,” Trump stated. His plan aligns with his long-standing commitment to imposing tariffs equal to those that other nations place on U.S. exports.

Trump’s Trade Strategy and Key Concerns

The announcement came during a meeting with Japanese Prime Minister Shigeru Ishiba, where Trump also mentioned that auto tariffs remain under consideration. He has repeatedly criticized the European Union’s 10% tariff on U.S. car imports, which is significantly higher than the U.S. tariff of 2.5% on European vehicles.

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Trump has often pointed out that while millions of European cars enter the U.S. market each year, American automakers face steep trade barriers abroad. At the same time, the U.S. already imposes a 25% tariff on imported pickup trucks, a critical segment for American manufacturers like General Motors, Ford, and Stellantis.

Global Trade Disparities and Tariff Challenges

During recent confirmation hearings, Commerce Secretary nominee Howard Lutnick raised concerns over India’s high tariff rates, while U.S. Trade Representative nominee Jamieson Greer pointed out similar challenges with Vietnam and Brazil. According to World Trade Organization data, the U.S. trade-weighted average tariff rate is around 2.2%, significantly lower than India's (12%), Brazil's (6.7%), Vietnam's (5.1%), and the EU's (2.7%).

Sources familiar with the matter said Trump discussed the tariff strategy with Republican lawmakers at the White House on Thursday. His administration sees increased tariffs as a way to generate revenue, potentially helping to fund an extension of the 2017 tax cuts. Analysts, however, warn that these tax cuts could add trillions of dollars to the national debt. While tariffs typically account for only about 2% of federal revenue, the administration believes they could offset some budget shortfalls.

Market Reaction and Economic Concerns

Last week, Trump announced a 25% tariff on imports from Canada and Mexico but later delayed its implementation following market backlash. In response, both countries agreed to enhance border enforcement, a top priority for the Trump administration.

Following reports of Trump’s tariff discussions, Wall Street saw extended losses on Friday. Additionally, U.S. consumer confidence dropped to its lowest level in seven months, with concerns rising over inflation linked to increased tariffs.

Legislative Hurdles and Next Steps

Trump and Republican lawmakers are preparing to unveil their tax and spending package this weekend. However, passing the proposal through Congress may be challenging, given the slim Republican majorities. To bypass Democratic opposition, Republicans may need to rely on complex budget rules, requiring complete unity within the party.

Trump is scheduled to meet with Senate Republicans for dinner on Friday and will attend the Super Bowl with House Speaker Mike Johnson on Sunday. Meanwhile, in his confirmation hearing, Greer stressed the need for foreign nations to reduce trade barriers if they wish to maintain access to the U.S. market, with Vietnam specifically highlighted.

“If I’m confirmed, I plan to visit these countries and make it clear that continued access to the U.S. market requires fairer trade terms,” Greer stated.

With Trump’s announcement just days away, the global trade landscape may see a significant shift, further fueling debates on tariffs, trade policies, and economic strategy.