Investing.com -- President Donald Trump said Friday that he will announce reciprocal tariffs next week, aiming to fulfill a campaign promise to impose duties on U.S. imports that match the rates imposed by trading partners.
The news was first reported by Reuters, However, Trump then made the announcement during a meeting with visiting Japanese Prime Minister Shigeru Ishiba. He did not identify which countries but said "many countries" would be targeted.
Trump has long championed the idea of reciprocal tariffs as a way to secure what he calls a “fair deal” for the United States. He has repeatedly criticized the foreign levies on U.S. exports and has threatened to target key sectors, including imported steel, pharmaceuticals, and oil.
Trump is said to have revealed his intentions during budget discussions with Republican lawmakers at the White House on Thursday. However, details remain unclear.
Reports stated that Trump and his top aides suggested that the revenue from these tariffs could help offset the cost of extending his 2017 tax cuts, though the impact on the federal budget is expected to be limited.
Tariffs have historically contributed only about 2% of annual U.S. government revenues.
The announcement follows Trump’s recent move to impose 25% tariffs on Canada and Mexico, which were subsequently delayed. The two U.S. trading partners agreed to enhance border enforcement efforts, a key priority for Trump.
Following the news, Wall Street extended losses on Friday as investors reacted to the prospect of increased trade tensions.