The Trump administration, which had announced plans to implement reciprocal tariffs on allies and other countries starting in April, has stated that tariffs can be adjusted depending on the trade partners’ behaviors.
During a Sunday Fox News interview, U.S. Treasury Secretary Scott Bessent elaborated on the policy, explaining that the situation is fluid and outcomes will depend on how things progress, making it difficult to predict exact developments. He added that the Department of Commerce and the Office of the United States Trade Representative (USTR) are set to produce a comprehensive report on April 1.
According to Bessent, the report will evaluate trade partners on several factors, including tariffs, non-tariff barriers, currency manipulation, support for domestic companies, and legal actions against major U.S. tech firms. Bessent stated that the essence of reciprocal tariffs is to mirror the actions of trading partners and then add additional elements to the review. He further noted that tariffs could be reduced if counterparts improve in these areas. However, if they continue with unfair trade practices, the U.S. will persist in raising tariffs until they are willing to negotiate.
This announcement follows U.S. President Donald Trump’s statement on February 7 advocating for reciprocal tariffs. Trump argued that it would be fair to impose tariffs on foreign products equivalent to those of U.S. products. The U.S. imposes a 2.5% tariff on imported cars, while the European Union (EU) applies a 10% tariff. He cited this difference in tariff rates as an example of unfair trade and announced reciprocal tariffs to offset the difference. On February 13, Trump officially decided to impose reciprocal tariffs and instructed the Department of Commerce to prepare relevant reports.
When questioned about the potential use of the 1930 U.S. Tariff Act, which allows for up to 50% tariffs, U.S. Treasury Secretary Scott Bessent cautiously suggested waiting until April 1 to see how the situation develops. He expressed confidence in the president’s strategic approach, noting that he better understands leverage than anyone. Bessent emphasized that he wouldn’t preempt the president’s decisions and expressed certainty that the president would take whatever steps necessary to secure free and fair trade for the American people.
