{"id":2551,"date":"2025-03-03T06:39:52","date_gmt":"2025-03-03T06:39:52","guid":{"rendered":"https:\/\/insight.thomsonreuters.in\/business\/posts\/trump-reciprocal-tariff-threats-rock-global-trade"},"modified":"2025-03-27T05:27:23","modified_gmt":"2025-03-26T23:57:23","slug":"trump-reciprocal-tariff-threats-rock-global-trade","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.in\/business\/posts\/trump-reciprocal-tariff-threats-rock-global-trade","title":{"rendered":"Trump reciprocal tariff threats rock global trade"},"content":{"rendered":"\n

Tariffs have been a target for reform since U.S. President Donald Trump took office earlier this year. <\/p>\n\n\n\n

President Trump issued numerous executive orders to increase tariffs including the now delayed 25% tariffs on Mexico and Canada, and a 10% tariff on China. <\/p>\n\n\n\n

Exemptions on steel and aluminum tariffs from President Trump’s administration will be removed. Since then however, one of the more drastic announcements has been the Presidential Memorandum threatening reciprocal tariffs on any country that President Trump perceives to disadvantage U.S.<\/p>\n\n\n\n

The threat of reciprocal tariffs is something businesses cannot ignore. According to Zoe Martinez, Global Trade Portfolio Lead at Thomson Reuters, the move can have an impact on the cost base.<\/p>\n\n\n\n

\u201cThe complexity of mapping tariff schedules across nations to assess potential increases in tariff-related costs – and how these could escalate throughout the supply chain – presents a near-impossible task, particularly given the uncertainty about which countries or industries will ultimately be impacted. <\/p>\n\n\n\n

\u201cBusinesses must also be concerned not only with imports to the US but also with those countries that may choose to retaliate,\u201d said Zoe.<\/p>\n\n\n\n

What\u2019s in Trump\u2019s reciprocal plan? <\/h1>\n\n\n\n

President Trump announced his “Fair and Reciprocal Plan,” to ensure “fairness” across the boarding his view. The plan seeks to correct long-standing imbalances in international trade as viewed by the current Trump administration. To “ensure fairness across the board”, an investigation has commenced. Reports from various Secretaries detailing tariff remedies and assessments of harmful trade practices are due on April 1. The actions are slated to commence on April 2.\u00a0<\/p>\n\n\n\n

\u201cThe uncertainty surrounding which countries and industries that will be affected by reciprocal tariffs poses a significant challenge for businesses,\u201d said Zoe. <\/p>\n\n\n\n

\"\"
PHOTO: Zoe Martinez, Global Trade Portfolio Lead, Asia & Emerging Markets at Thomson Reuters.<\/em><\/figcaption><\/figure>\n\n\n\n

\u201cWhile those with the largest tariff imbalances appear to be the most likely candidates, the \u201cFair and Reciprocal Plan\u201d also considers factors such as unfair taxes, non-tariff barriers, exchange rate policies, wage suppression, and market access limitations, this means that it is incredibly difficult for business to determine where reciprocal tariffs could be applied.\u201d<\/p>\n\n\n\n

The White House pinpointed Brazil, India, and European Union members who may face increased tariffs on exports to the U.S in a recent fact sheet. If the tariffs go ahead, industries such as ethanol, motorcycles, and automotive will be impacted. Additionally, nations imposing digital service taxes on American companies, like Canada and France, might also experience trade policy adjustments. <\/p>\n\n\n\n

\u201cWith the looming April 1st deadline and the possibility of enactment as soon as April 2nd, the business community will need to pay close attention to ongoing negotiations between countries and the Trump administration,\u201d said Zoe.<\/p>\n\n\n\n

Cars, pharmaceuticals and chips up next <\/h1>\n\n\n\n

With steel, aluminum, and low-value imports to the U.S. already targeted, pharmaceuticals, automotive, and semiconductors are now under threat. The tariffs on pharmaceuticals and semiconductor chips would start at “25% or higher” over time. From his Mar-a-Lago estate, President Trump announced substantial increases over 12 months as well.<\/p>\n\n\n\n

President Trump appears to expect this tariff push to sway major companies into establishing factories in the U.S. While no specific date has been stated, the move seems to imply that setting up operations on U.S. soil could be a potential solution for companies to avoid getting hit with import tariffs moving forward. <\/p>\n\n\n\n

Trump tariffs reshaping international trade <\/h1>\n\n\n\n

The Trump administration’s tariff strategies have forced corporations worldwide to take action. Staying current on which industries or countries could face deeper tariffs is a daily task. <\/p>\n\n\n\n

\u201cWe’ve heard that the automotive, pharmaceutical, and semiconductor sectors are in the firing line, as well as lumber, copper, countries with Digital Services Taxes, and most recently, all imports from the EU,\u201d said Zoe.<\/p>\n\n\n\n

Businesses worldwide must take initiative to prepare. The only certainty is that more tariff uncertainty is expected, according to Zoe, given the rate of change during the first few weeks of the second Trump administration. <\/p>\n\n\n\n

\u201cThe Trump Administration isn’t holding back on imposing steep tariff measures, making it a top priority for the C-suite to navigate these changes.<\/p>\n\n\n\n

\u201cCompanies are grappling with the challenge of assessing the impact on their supply chains while seeking clarity in a highly volatile regulatory environment.<\/p>\n\n\n\n

\u201cEnsuring visibility into product classifications and tariff changes across the supply chain is crucial, as companies will need to adapt quickly given the short lead times to mitigate cost impacts should new tariffs come into force,\u201d Zoe concluded. <\/p>\n\n\n\n

As a trade expert for your company, now is an ideal time ensure you’re fully prepared for the magnitude and pace of these changes. ONESOURCE Global Trade<\/a> is essential for staying ahead of these changes.<\/p>\n\n\n\n

Thomson Reuters exclusive webinar, \u201cTrump 2.0 Series Vol.2 \u2013 Reflecting on the First 30 Days<\/a>,\u201d examines the key changes U.S. President Donald Trump has made during his first month in office. Get exclusive access to learn the significant impact on global trade, particularly in Asia and emerging markets. <\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Tariffs have been a target for reform since U.S. President Donald Trump took office earlier this year.<\/p>\n","protected":false},"author":152,"featured_media":2552,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[681,694],"tags":[767,980,981],"insight_job_role":[982,777],"insight_practice_area":[932],"class_list":["entry","author-legalexecutiveinstitute1","has-excerpt","post-2551","post","type-post","status-publish","format-standard","has-post-thumbnail","category-global-trade-supply-chains","category-global-trade-strategy","tag-global-trade","tag-tariffs","tag-trump-tariffs","insight_job_role-head-of-trade-compliance","insight_job_role-trade-manager","insight_practice_area-banking-and-finance-law","hentry"],"acf":[],"yoast_head":"\nTrump reciprocal tariff threats rock global trade - TR - Business Insight India<\/title>\n<meta name=\"description\" content=\"U.S. President Donald Trump\u2019s proposed reciprocal tariffs threat potentially lead to significant economic disruption.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insight.thomsonreuters.in\/business\/posts\/trump-reciprocal-tariff-threats-rock-global-trade\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump reciprocal tariff threats rock global trade - 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