Reciprocal Tariffs? We’ve Seen This Movie Before
The president makes the move sound deceivingly straightforward; in practice, it’s a hornet’s nest of potential conflict and retaliation.
Choppy waters ahead.
Photographer: Eric Thayer/Bloomberg
President Donald Trump has pledged to hit countries on Wednesday with “reciprocal tariffs,” whatever that means. In the president’s characterization, the US will raise tariffs to a level that’s suitably high to match the tariff and non-tariff barriers that our exporters face in international markets. It sounds deceivingly straightforward; in practice, it’s a hornet’s nest of potential conflict and retaliation.
While the much-hyped announcement could take US stocks in either direction this week, the tit-for-tat and negotiations to follow are likely to generate bouts of volatility that could play out over years to come.